Intra-regional trade of ASEAN+3: Trends and issues for the economic integration of East Asia

Abstract

This paper examined the structures and characteristics of ASEAN+3 intra-regional trade through an analysis of intra-regional trade share, the intra-regional trade intensity index, and the regional trade introversion index in terms of primary goods, intermediate goods, and final goods. We could see that the economic integration of ASEAN+3 would be enlarged and deepened through the progress and advancement of intra-regional trade. However, we found that although the volume and share of intra-regional trade has been growing, this may not indicate or guarantee the inherent advancement of the economic integration of the region. In particular, since the global financial economic crisis in 2008–2009 the introversion of the EU and NAFTA has grown, while that of ASEAN+3 has reduced. In this respect, it would be vital to make and practice innovative plans to develop intra-regional trade so that the foundation of the FTA among ASEAN+3 countries could be the catalyst for substantial development of intra-regional trade. Furthermore, in order for intra-regional trade to continue to develop, a more comprehensive and higher level of intra-regional economic integration is required. This can be realized through regulation, specific plans, and practical effort. Finally, to maximize the effect of intra-regional trade liberalization this needs to go beyond the boundary of intermediate goods and expand into final goods, especially consumption goods.