Reorganization of Intra-ASEAN 5 Trade Flows: The ‘China Factor’*

Evelyn S. Devadason

21 citations0/0 files storedAsian Economic Journal

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Global trade and economics International Business and FDI Global Political and Economic Relations

Abstract

There are claims that China's influence on ASEAN is direct in that she has encouraged more exports to flow into her huge markets and changed trade flows among member countries. Demand and supply are thus deemed to have become more China-centered. This study therefore explores the plausibility of China as a ‘factor’ that influences bilateral intra-ASEAN 5 trade flows through demand (exporting country) and supply (importing country). The results imply that China's integration in the region increases the size of the key ASEAN member economies export market. There is also no indication that import sourcing from China by ASEAN 5 countries reduces export expansion within the latter. The results accord with the fact that although China has become an important export destination and an import source for individual ASEAN 5 countries, this has not reduced intra-ASEAN 5 trade.

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References

1979A Theoretical Foundation for the Gravity Equation.1985The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence 2006Do free trade agreements actually increase members' international trade?1989The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade 1975Intra-Industry Trade: The Theory and Measurement of International Trade in Differentiated Products.2005Product quality and the direction of trade 2016A Tentative Model for the Volume of Trade between Countries 2004Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model

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2023Evaluation of China-ASEAN trade status and trade potential: An empirical study based on a gravity model

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