Abstract

In addition to their membership in the Organization of Islamic Cooperation (OIC), Indonesia and Malaysia are also involved as active members in the evolving Association of South-East Asian Nation (ASEAN). This raises a question over whether involvement in the ASEAN, especially how ASEAN Free Trade Area (AFTA) brings about a negative or positive impact on Indonesia’s and Malaysia’s trade perfor­mance with fellow OIC member countries. The current paper attempts to examine empirically the likelihood of such relationship and explore whether there presents a systematic difference between the case of Indonesia and Malaysia. Based on the results, some implications will be highlighted and policy recommendations will be offered.

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