Signing for Safety: Regional Trade and Economic Crises

Abstract

Various studies conducted identify deeper regional economic integration and cooperation pursued by regional arrangements in response to economic crises, in the belief that deeper integration and cooperation may strengthen regional resilience when crisis hits. However, how these regional arrangements have performed after deepening regional integration has been understudied. This thesis hence aims to provide a closer examination of regional integration and its effects on regional arrangements, with a focus on ASEAN Plus Three and Mercosur as cases to be compared. While both regional arrangements were borne out of crises, ASEAN Plus Three sought further integration, whereas Mercosur relatively remained stagnant. This study finds that pursuing deeper regional economic integration is contingent on demand and supply factors for deeper integration, as well as the presence of benevolent leadership in the region. Consequently, should there be those factors present which lead to deeper regional economic integration, regional arrangements would help states deal with economic crises better, as seen from the relatively more sustainable recovery and growth by ASEAN Plus Three compared to Mercosur.