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The aim of this study is to assess the relationship between revenue and expenditure in the ASEAN countries. Using annual data for the period between 1980 and 2012 in ten member states, a long-run relationship between government expenditure and revenue emerges, both in ASEAN-6 and ASEAN-10 countries. Granger causality analysis shows mixed results, even though for five ASEAN countries the predominance of 'tax-and-spend' hypothesis exists, given that government revenue drives the expenditure. Moreover, mixture models seem to produce homogeneous groups, considering the socio-economic structure, welfare state, and historical aspects. Finally, convergence measures show interesting results, confirming the sample's heterogeneity. Keywords ASEAN. South-East Asia * Economic growth * Government expenditure * Government revenue * Panel JEL B22 * C33 * E62 * F33, Introduction The global economic and financial crisis in 2008-2009 led to a deep contraction in developing Asia's growth. The severity of the economic downturn, however, varied from country to country. [...]

The phenomenon of proliferation of preferential trade agreements, bilaterally and regionally, was particularly more pronounced both in the aftermath of the regional financial and economic crisis that affected East Asia in 1997-98 and in the inability of the WTO to yield any substantial outcome to improve growth prospects of the Asian economies. This paper analyses the implications of ASEAN's ongoing FTAs and examines its role in fostering deeper economic integration within ASEAN and in Asia. It analyses the evolution and characteristics of FTA proliferation in ASEAN, identifying major trends. The paper argues that in their present state, if not properly designed and managed, there are valid concerns that these FTAs could end up becoming a stumbling block towards integration efforts. Implementation integrity among FTA members therefore remains a key to its success, and empirical and policy research needs to be much more forthcoming in this area in order to fully understand the economic ramifications of these FTAs. Keywords: Free trade agreements, economic integration, ASEAN., I. Introduction While a contentious debate continues to stall the multilateral trade talks at the World Trade Organization (WTO), a plethora of bilateral and regional trading and economic cooperation agreements [...]

Four regional trading agreements have now set a goal of a 'single market'. These are the EU, CARICOM, ASEAN, and CER agreements. However, in none of them is the goal well defined. This paper defines a single market in terms of the concepts of economic integration. An area is completely integrated if the Law of One Price holds for all commodity and factor markets. The paper examines the conditions which are necessary for the Law to hold. It then measures the progress towards this goal in seven regional trading agreements. It examines the steps ASEAN needs to take if it is to be a single market., Until recently, the European Union (EU) was the only major Regional Trading Agreement (RTA) that had formally adopted a Single Market as a goal. Since 2002, the Caribbean Community (CARICOM) [...]

The China-ASEAN Free Trade Agreement, proposed in Nov 2000, would establish a free trade zone between China and all member nations by 2010. The main challenge to this arrangement is competition by ASEAN and China for foreign investment and similarity in all these nations' industrial and trade structures.

The successful introduction of the euro brings renewed interest to the topic of whether similar approaches might be successfully implemented in other regions. One region that may be a promising candidate for this process is Southeast Asia, comprising the ASEAN member countries. These nations have long seen the value of co-operation in order to promote peace, stability, and economic growth. Nonetheless, important differences between the euro area and the ASEAN zone suggest that a wholesale importation of the European approach may be inopportune at the moment. The issues are examined by using economic convergence modelling perspectives. In general, the findings clearly suggest that further work remains before ASEAN will be able to fully benefit from having a single currency area., I. Introduction The recent successful introduction of a common printed currency in the euro zone brings renewed interest to the topic of whether similar approaches might be successfully implemented in [...]

This article argues that the Southeast Asian development model (SEADM), as practised in parts of Southeast Asia, reflected an overwhelming emphasis on growth as a goal while neglecting issues of equity and justice. This was clearly seen in the Thai and Indonesian experiences, where rising growth rates and income levels under open/free market policies were accompanied by widening income and wealth disparities, as well as growing feelings of marginalization, deprivation, and of injustice among large segments of the local population. In both countries, these developments led to growing challenges to the open market system well before the regional financial crisis. Yet, rethinking the SEADM does not mean doing away with open market policies. Instead, approaches to development must take seriously the goals of equity and social justice, to overcome the danger of open conflict and societal resistance that will likely emerge to challenge the very policies that have the best chance of delivering economic well-being over the long run., I. Introduction Since the mid-1980s, the core ASEAN economies, namely Indonesia, Malaysia, the Philippines, and Thailand, adopted an outward-focused, export-oriented, and foreign direct investment (FDI)-led approach to economic development, which [...]

The Assn of Southeast Asian Nations has proven to be an efficient tool for economic integration in the region. Since its founding in 1965, the region, through the ASEAN, has moved towards closer trade and economic relations with member countries and with the world. It has enjoyed unprecedented economic growth and continues to advocate regional cooperation. Its success has influenced the advocacy of open regionalism by the Asia-Pacific Economic Cooperation.

The Assn of South East Asian Nations' (ASEAN) pursuit of regional and multilateral trade relationships is analyzed. It is argued that ASEAN's regional efforts are aimed at fueling economic integration and attracting foreign direct investments. On the other hand, its multilateral initiatives via the ASEAN Free Trade Area, Asia-Pacific Economic Cooperation and World Trade Organization have increased market access and prevented the trade diversion costs of regional preferences.

A study on the possible implication of the formation of the ASEAN Free Trade Area (AFTA) through foreign direct investment (FDI) flows to the region was conducted. It was revealed that the growth of FDI in AFTA is likely to result from the market enlargement factor which is achieved through continued commitment to outward oriented policies and the arbitration of effective investment which is considered the most effective given a short time. The AFTA strategy has a promising motivation to achieve international production strategies, thus, leading to better inter-regional specialisation in international production.

The establishment by the Assn. of South East Asian Nations (ASEAN) of the ASEAN Free Trade (AFTA) in Jan. 1993 ushered in a new era in regional economic cooperation for this predominantly political entity. However, the AFTA is quite limited in its coverage of commodities and does not measure up to the provisions of the NAFTA in terms of trade liberalization. Nonetheless, the AFTA represents an important step and its limitations mainly arise from its nature as a regional trading arrangement, which is clearly inferior to a multilateral trading system such as the NAFTA.

The growth of capital and investment is very essential in the countries belonging to the ASEAN as they co-ordinate the economic policies of all the countries. Economic policies must be formulated on the basis of creating an open market for investments in the ASEAN countries. The ASEAN countries must also aim at balancing their capital inflow and outflow to maintain the standards of demand, supply and investment.

The countries belonging to the ASEAN have adopted the ASEAN Free Trade Area (AFTA) to solve the problem of severe economic disintegration. The AFTA will help enhance the demand for goods and will create market for the goods. AFTA is also considering the need to restore the environment which is fast degrading due to the increase in industrialization.

With the 50th anniversary of Pearl Harbor only recently behind us, it may seem odd to contemplate the prospects of a coming Pacific Century. In fact, the moment could not be more fitting. After all, current hopes for Pacific cooperation rest largely upon the example of Japan and what it accomplished, with U.S. assistance and the U.S. market, during the years after World War II. Japan's postwar miracle inspired similar takeoffs in other Asian economies, with the result that the Asia-Pacific is fast becoming the most vibrant economic zone in the world. An important question, though, is whether such developments augur the emergence of a Pacific-wide region, bound together by trade, cultural commingling, and mutual security arrangements. Another question is whether the United States should look to the Pacific as its future. Considering these and related questions, our two contributors, Frank B. Gibney and James Clovis Clad, take opposing views. While Gibney sees a Basin brimming with possibilities, Clad finds something far less than overflowing.

Close to 90% of tradeable items identified by the Thai Customs Department will be included in the Common Effective Preferential Tariff scheme agreed upon by the Assn of South East Asian Nations. Thailand also intends to participate in all 15 product categories under the fast track program with about 1,936 items covered. Under the normal track program, 2,764 Thai products will be up for tariff reduction. On the exclusion list are 118 items which are being temporarily protected from foreign competition. These include agricultural goods, drinks and liquor, tobacco and electrical appliances.

Malaysia is including 3,251 products, representing 27.7% of 11,746 tariff lines, in the fast track program of the Common Effective Preferential Tariff (CEPT) scheme adopted by the Assn of South East Nations. On the other hand, 6,895 products will be covered under the normal track program of the tariff reduction scheme. Formulas for the reduction of import duties under the fast track and normal track programs are presented. Malaysian products excluded due to sensitivity numbered 1600, 648 of which will be phased into the CEPT scheme by the year 2001.

Indonesia has included 18 top export industrial products in the Common Effective Preferential Tariff scheme of the Assn of South East Nations (ASEAN). These include textile, wooden, leather and steel products. These product groups were chosen according to the broad spectrum policy for industrial development adopted by the Indonesian government. The government also expressed confidence that Indonesian products will become more competitive as the market opens itself to competition with products from other ASEAN countries.

The ASEAN Economic Community was established to all ASEAN to outperform other Asian economies especially China and India, and to reduce the economic differences between its members by allowing free movement of goods and services, as well as capital, across the ten member states.

Address by H. E. Rodolfo C. Severino, Secretary-General of the Association of Southeast Asian Nations, at the AFTA Roundtable Discussion Bangkok, 21 November 2000 We are here, first, to have [...]

The next challenge for ASEAN, which has been a successful and effective forum for political co-operation among Southeast Asian countries, is to promote greater economic co-operation. Income convergence helps to promote economic integration in the long run. This article examines the issue of convergence among Southeast Asian economies during 1960-97. No evidence of convergence is found., I. Introduction Southeast Asia comprises 10 states -- Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. The Association of Southeast Asian Nations (ASEAN) serves as the [...]