REGIONAL INTEGRATION AMONG ASEAN NATIONS

Abstract

We are currently at the crossroad of ASEAN economic cooperation. The need to move forward in economic cooperation has never been greater in view of the current world economic environment. With the recent conclusion of the Uruguay Round under GATT and the setting up of the World Trade Organisation (WTO), there is further need for ASEAN member countries to pursue the benefits and opportunities of increased regional economic integration. This is especially so in the event of the increase of various economic groupings that have sprung out in the world as well as the recent rise in economic performance of developing countries like Vietnam, China and lndia. With this change of events, ASEAN leaders have seen the need for further regional economic integration so that ASEAN could be on par with the rest of the world.

In ASEAN, regional cooperation have been installed for some time. This honours thesis attempts to explore the reasons for such regional integration. As such, the various forms of regional integration programmes, and their benefits are discussed in details with the main focus on ASEAN Free Trade Area (AFTA). The impact of the former regional integrations and AFTA have on ASEAN as a whole as well as member countries' economies, using intra-ASEAN trade and foreign direct investment, are examined. Finally, to conclude, the future of ASEAN regional integration programmes, AFTA, would be evaluated based on this analysis.