The ASEAN+3 Trading Bloc

Larry D. Qiu () and Yum K. Kwan
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Larry D. Qiu: The University of Hong Kong, Postal: School of Economics and Finance, University of Hong Kong, Hong Kong
Yum K. Kwan: City University of Hong Kong, Postal: City University of Hong Kong

Journal of Economic Integration, 2010, vol. 25, 1-31

Abstract: The ASEAN+3 proposal has attracted attention in Asia and the world. We argue that a free trade agreement (FTA) for ASEAN+3 is beneficial to all member countries due to three factors: (i) existing and expected vertical foreign direct investment linkage between Japan/Korea and ASEAN member countries, (ii) high expected growth rate of the Chinese economy, and (iii) the economic diversity among members of ASEAN+3 group.

Keywords: ASEAN; free trade agreement; trade creation; trade diversion; foreign direct investment; trading bloc (search for similar items in EconPapers)
JEL-codes: F13 F15 F53 (search for similar items in EconPapers)
Date: 2010
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