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Prospects for ASEAN-China Free Trade Area: A Qualitative and Quantitative Analysis
- Issue Date
- 7월-2009
- Publisher
- WILEY
- Keywords
- ASEAN; China; computable general equilibrium model; economic integration; free trade area; F10; F14; F15
- Citation
- CHINA & WORLD ECONOMY, v.17, no.4, pp.104 - 120
- Indexed
- SCIE
SCOPUS
- Journal Title
- CHINA & WORLD ECONOMY
- Volume
- 17
- Number
- 4
- Start Page
- 104
- End Page
- 120
- ISSN
- 1671-2234
- Abstract
- The current global financial and economic crisis is giving new life to initiatives that promote closer economic integration among East Asian countries. A significant example is the ASEAN-China Free Trade Area (ACFTA), which is set to come into effect around 2010. ACFTA aims to boost trade between two economies that are partners as well as competitors: ASEAN and China. In the present paper, we use insights from customs union theory in a qualitative analysis considering whether ACFTA would benefit both sides. We also apply a computable general equilibrium model to perform a quantitative analysis of the same issue. Both our qualitative and quantitative analyses provide grounds for guarded optimism regarding ACFTA's prospects as a vehicle for strengthening the economic partnership between ASEAN and China.
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