Prospects for ASEAN–China Free Trade Area: A Qualitative and Quantitative Analysis

17 Pages Posted: 8 Oct 2009

See all articles by Donghyun Park

Donghyun Park

Nanyang Technological University (NTU); Asian Development Bank

Innwon Park

Korea University

Gemma Bolotaulo Estrada

Asian Development Bank - Economic Research

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.

Suggested Citation

Park, Donghyun and Park, Innwon and Estrada, Gemma Bolotaulo, Prospects for ASEAN–China Free Trade Area: A Qualitative and Quantitative Analysis. China & World Economy, Vol. 17, Issue 4, pp. 104-120, July-August 2009. Available at SSRN: https://ssrn.com/abstract=1484127 or http://dx.doi.org/10.1111/j.1749-124X.2009.01161.x

Donghyun Park (Contact Author)

Nanyang Technological University (NTU) ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

Asian Development Bank

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Innwon Park

Korea University ( email )

Gemma Bolotaulo Estrada

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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