EconPapers    
Economics at your fingertips  
 

ASEAN and the EU: an assessment of interregional trade potentials

Evelyn Devadason () and Shujaat Mubarik ()
Additional contact information
Shujaat Mubarik: Mohammad Ali Jinnah University

International Economics and Economic Policy, 2020, vol. 17, issue 3, No 7, 705-726

Abstract: Abstract Though negotiations on an Association of Southeast Asian Nations – European Union (ASEAN-EU) trade agreement began in 2007, the region-wide agreement stalled, and the EU has since pursued bilateral agreements with individual ASEAN member states (AMS). Nevertheless, the goal to form an interregional agreement remains as the European Commission and the AMS are currently undertaking a stocktaking exercise to explore the prospects towards the resumption of region-to-region negotiations. In this paper, a stochastic frontier specification of the gravity model is employed to identify and compare the performance (efficiency) of exports relative to the maximum export levels for the ASEAN-EU partnership. The findings, based on a panel dataset of two-way bilateral exports between the ASEAN-10 and the EU-28 over the 2000–2016 period, indicate a low-level of export efficiency. The low efficiency scores of below 0.2 suggest a high degree of trade resistances in the ASEAN-EU partnership. The low interregional trade potentials relate to market access issues, which in turn depend on the trade policy of both regions.

Keywords: Augmented gravity model; Stochastic frontier analysis; Interregional exports; Association of Southeast Asian Nations; European Union (search for similar items in EconPapers)
JEL-codes: F14 F15 C23 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s10368-020-00471-5 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:iecepo:v:17:y:2020:i:3:d:10.1007_s10368-020-00471-5

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10368/PS2

DOI: 10.1007/s10368-020-00471-5

Access Statistics for this article

International Economics and Economic Policy is currently edited by Paul J.J. Welfens, Holger C. Wolf, Christian Pierdzioch and Christian Richter

More articles in International Economics and Economic Policy from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().

 
Page updated 2021-03-29
Handle: RePEc:kap:iecepo:v:17:y:2020:i:3:d:10.1007_s10368-020-00471-5