The ASEAN Economic Integration Principles: Open, Convergence, Inclusive, and Green

Kiki Verico

No 202271, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: ASEAN is in the process of structural economic and digital transformation. ASEAN needs to adopt related principles to support it. This paper found that structural economic transformation requires the open economy as the necessary principle and economic convergence as the sufficient condition. The open regionalism principle is needed because ASEAN needs Foreign Direct Investment (FDI) from member and non-member states. Furthermore, open regionalism must decrease the economic gap within member states. Therefore, ASEAN needs a sufficient condition of economic convergence within member states. This paper took the implementation of Bali Concord III on FDI inflows as a proxy for open and the GDP per capita gap to the highest member state’s GDP per capita within member states as a proxy for economic convergence. This paper confirmed that economic convergence comes after the open principle. As for the digital economic transformation, this paper showed ASEAN needs the inclusive principle. Lastly, it described ASEAN’s commitment to the green economy. This paper adopted the quantitative method in assessing open and convergence and the qualitative approach in analysing inclusive and green principles.

Keywords: international; economy; —; open; economy; —; economic; integration; —; digital; economy; —; sustainable; economy; —; ASEAN (search for similar items in EconPapers)
JEL-codes: F02 F15 F41 O36 Q01 (search for similar items in EconPapers)
Date: 2022-71, Revised 2022
New Economics Papers: this item is included in nep-int and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://lpem.org/repec/lpe/papers/WP202271.pdf First version, 2022 (application/pdf)

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:lpe:wpaper:202271

Access Statistics for this paper

More papers in LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia Contact information at EDIRC.
Bibliographic data for series maintained by Arianto Patunru ().