Macroregional economic integration in Southeast Asia: AFTA and the automobile industry from a Thai perspective

Abstract

Cross‐border automobile production and trade is still subject to regulations and restrictions in developed as well as developing political economic spaces. Although global production networks are within this industrial sector are significantly underpinned by political economies at national scales, macro‐scale regulation increasingly influences how and where lead firms operate within the global economy. Within this changing context, this paper outlines the recent regulatory changes in the regional political economy of Southeast Asia with the introduction of the ASEAN Free Trade Area (AFTA). Drawing on empirical evidence from the Thai industry, and how macroregional automobile production networks are established, the paper focuses on the changes of this free trade policy for component as well as vehicle trade.