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East Asia Free Trade Area: From ASEAN Plus One Perspective
Tran Nhuam Kien 대구대학교 경제경영연구소 2006 경제경영연구 Vol.4 No.1
This paper analyzes reasons and motivations for the initiative of the ASEAN+1 FTAs in the context of East Asia's regional economic integrating that such initiative marks the commencement of an East Asian FTA, and in succession triggers the East Asian economic integration, which will balance the two major regional arrangements in the world, EU and NAFTA. Using a gravity model, I have examined whether ASEAN+1 FTAs are trade creation or trade diversion between member and non member countries on the way of forming FTAs in East Asia. The empirical results in the paper suggest two important conclusions. First, GDP, population, area of member countries as well as distance and language connection show significant for East Asia regional trade. Second, all ASEAN+1 FTAs are open to trade with the rest of the world (i.e., no trade diversion). However, the establishment of ASEAN+1 FTAs would worsen the trade balances of member counties with the United States and Japan.
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