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Journal of Economic Integration 2010 March;25(1) :1-31.
DOI: https://doi.org/10.11130/jei.2010.25.1.1
The ASEAN+3 Trading Bloc
Yum K. Kwan and 
Larry D. Qiu 
City University of Hong Kong
The University of Hong Kong
Copyright ©2010 Journal of Economic Integration
ABSTRACT

The ASEAN+3 proposal has attracted attention in Asia and the world. We argue that a free trade agreement (FTA) for ASEAN+3 is beneficial to all member countries due to three factors: (i) existing and expected vertical foreign direct investment linkage between Japan/Korea and ASEAN member countries, (ii) high expected growth rate of the Chinese economy, and (iii) the economic diversity among members of ASEAN+3 group.

JEL Classification: F13, F15, F53

Keywords: ASEAN | free trade agreement | trade creation | trade diversion | foreign direct investment | trading bloc
 
REFERENCE
1. Amemiya, Takeshi(1985), Advanced Econometrics, Cambridge: Harvard University Press.
2. Anderson, Kym and Hege Norheim(1993), "Is World Trade Becoming More Regionalized?", Review of International Economics, 1(2), pp. 91-109.
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