Economic Journal of Emerging Markets
Volume 2 Issue 1, 2010

ASEAN ECONOMIC INTEGRATION: TRADE CREATION OR TRADE DIVERSION FOR IMPORT OF INDONESIA MANUFACTURES?

Samsubar Saleh (Unknown)
Bambang Suprayitno (Unknown)

Article Info

Publish Date
30 Sep 2011

Abstract

This research investigates the trade creation and trade diversion of Indonesia manufactures importfrom extra and intra ASEAN countries after ASEAN economic integration. Using regression analysis,the study suggests that Indonesia manufactures import has been diverted from extra ASEANcountries both in short run and long run. In the short run, the ASEAN economic integration doesnot result in trade creation for Indonesia manufactures import from intra-ASEAN countries. Thismight stems from the insignificant difference Common Effective Preferential Tariff (CEPT) andMost Favoured Nation (MFN) tariffs and the existence of non-tariff barriers.Keywords: Economic integration, trade creation, trade diversion, Indonesia manufacturesJEL classification numbers: F15, O14

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Journal Info
Economic Journal of Emerging Markets
Website

Abbrev

JEP

Publisher

Universitas Islam Indonesia

Subject

Economics, Econometrics & Finance

Description

The Economic Journal of Emerging Markets (EJEM) is a peer-reviewed journal which provides a forum for scientific works pertaining to emerging market economies. Published every April and October, this journal welcomes original research papers on all aspects of economic development issues. The journal ...