Technological intensity in manufacturing trade between ASEAN and the EU: challenges and opportunities

Amadeo Navarro Zapata, María Arrazola and José Hevia
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José Hevia: Universidad Rey Juan Carlos

Asia Europe Journal, 2023, vol. 21, issue 1, No 2, 23-42

Abstract: Abstract This article analyses trade flows EU-ASEAN, focusing on export performance and technological intensity, covering the years 2004–2016. The aim of this paper is to analyse to what extent, a further trade integration between the EU and ASEAN, could generate business opportunities for countries in both trading blocs. This analysis could serve as a basis for designing and implementing effective policies and strategies by policymakers in the face of a deepening EU-ASEAN trade integration. Therefore, a detailed analysis of the degree of complementarity of trade patterns, the weight of intra-industry trade, and the revealed comparative advantages allows us to outline some of those challenges and opportunities. Results suggest that intra-industry trade is moderate, mainly focused on few manufactures, accounting for a low value of total trade flows between the two blocs, and concentrated in a few countries. The Lafay index analysis suggests that the EU and ASEAN are natural partners regarding the technological patterns of the revealed comparative advantages; therefore, a deepening in trade integration between this trading blocs could allow to exploit those comparative advantages.

JEL-codes: F14 O14 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10308-023-00661-1

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