The Extent of Intra Industry Trade Between Thailand and ASEAN Economic Community (AEC)

Abstract

At present, the Asian region has an increasingly important role in the global economy. Economic indicators show that region’s GDP proportion (not including Japan) has increased from 9.7 per cent of world GDP in 1998 to 16.3 per cent in 2009. Therefore, the Asian region can be seen as the new engine to drive the new global economy. Many countries pay attention to increase investment and trading with Asian countries. Even though the ASEAN Economic Community (AEC) derived from the ASEAN leaders, the vision will still focus on transforming ASEAN into a single market and production base that is highly competitive and fully integrated into the global community by 2015. The economic integration goals will include, among others, the elimination of tariffs, free movement of professionals, freer movement of capital, and a streamlined customs clearance procedure [1]. The proportion of international trade between Thailand and the AEC shows that Thailand increased her exports to AEC countries from 19.34 percent in 2001 to 22.70 per cent in 2010. Imports from AEC to Thailand increased from 17.84 percent to 17.88 percent in the same period [2].