The development of ASEAN from historical approach

Since ASEAN was established in 8 August 1967, ASEAN organization was only joined by five countries.Now ASEAN has become a successful regional organization in bringing the attention of the other countries in rest of the world. Generally, ASEAN has successfully nurtures the cooperation in political, economical, social and cultural with establishment in exercise and research facilities for shared interest.Nowadays, ASEAN roles and influence has strong base in Southeast Asia and South Asia regions.ASEAN has taken place as important body in Asia Pacific political stream through Asian Regional Forum (ARF), where it is successful to create attention of various countries not only in Asia region but also United States of America and Europe involvement.Nevertheless, beside the successful story and prosperity achieved by ASEAN at this moment it has uniqueness when it has to face challenges at the early stage of ASEAN establishment. This journal will touch on history and ASEAN life story and explain What and How ASEAN able to strengthen its role and existence at the time Southeast Asia countries need an organization with the ability to unite all the countries in Southeast Asia region

Economic Integration between ASEAN+5 Countries: Comparison of GDP

This study aims to investigate the causality direction of economic integration among ASEAN countries together with five other neighboring countries, namely Australia, China, Japan, New Zealand and South Korea. The analysis is based on the economic integration of GDP covering the sample period from 1967 to 2007. Empirical results from the Toda and Yamomoto (1995) Granger non-causality tests depicted the existence of bi-directional causality relationships between the GDP of ASEAN and China; GDP of ASEAN and Japan; GDP ASEAN and South Korea, and also GDP of ASEAN and New Zealand. This indicates that there is a great potential for ASEAN countries moving towards higher degree of economic integration via strengthening the relationship with those countries within the region.Toda and Yamomoto; Economic Integration; ASEAN+5

Monitoring Trade Costs in Southeast Asia

This paper develops an Index of Trade Costs for ASEAN Member Countries, 1990-2007 based on the gap between cif and fob values of ASEAN exports to Australia. The cif/fob gap is a commonly used aggregate measure of trade costs, and Australia is a useful benchmark for ASEAN countries because it is a large trading partner whose major ports of entry are roughly equidistant from the ASEAN countries. The case for using this Index as a measure of trade costs is set out in the first section. The second section examines the raw data for the ASEAN countries. The third section reports econometric analysis of the cif/fob measure to better understand why trade costs vary across countries and to compare the ASEAN members' record to the global average during the period 1990-2007. The final section presents the two versions of the Index, discusses some reservations to using the cif/fob measure of trade costs, and suggests how the Index could be upgraded, maintained and extended.Trade costs; ASEAN.

Interdependence of Income between China and ASEAN-5 Countries

This paper examines the interdependence of income between China and ASEAN-5 countries by resorting to the time series econometrics analysis from 1960 to 2000 of the real Gross Domestic Product (GDP). Empirical results are found to support the strong interdependence of income between China and ASEAN-5 countries. With the increasing interest of economic integration around the globe especially the proposed China-ASEAN Free Trade Area (CAFTA), the interdependence and synchronization movements of income between member countries is an important characteristic for suitability toward the regional common currency goal.

Location decision for foreign direct investment in ASEAN countries (A TOPSIS Approach)

TOPSIS approach is applied to select the most suitable ASEAN countries for attracting FDI inflows. The proposed approach also provides a relatively simple tool for this strategic decision making problem. Within the model, ten indicators are defined as determinants of FDI inflows. By using TOPSIS method, the capacity and attraction of ASEAN countries is evaluated and given final rank for period 2000-2005. Results indicate that Singapore is the most attractive for investment among ASEAN countries while ranking of some countries have changed during these years.Foreign direct investment, ASEAN, Ranking, TOPSIS

A Gravity Model Approach of ASEAN+3 Free Trade Agreements on ASEAN’s Trade Flows: Trade Creation or Trade Diversion?

ASEAN has extensively cooperated with East Asian countries such as Japan, Korea, and China (hereafter called Plus Three Countries); then consecutively formed AJCEP, AKFTA, and ACFTA. Currently, ASEAN+3 (ASEAN and Plus Three Countries) is proposed in order to extend the socio-economic cooperation, most of all trade. Nevertheless, trade does not necessarily improve the welfare of all parties as the consequences of trade-creation and trade-diversion effect. The aim of this research was to analyze: (1) whether trade ASEAN+3 free trade agreement improve or worsen trade of ASEAN; (2) whether the change occurs through trade-creation or trade-diversion channel. A gravity model approach using panel data is employed to analyze the impact of ASEAN+3 free trade agreements on ASEAN‘s trade flows during the years of 2000—2014. The results revealed that GDP, GDP per capita, distance, common language, and contiguity have a significant role in determining trade within ASEAN+3. Additionally, this study designated that there has been trade creation within ASEAN+3 subsequent to AJCEP, AKFTA, and ACFTA. In spite of vigorous result of creation effect, all the models are likely to failed in negating trade diversion. To sum up, the ensuing agreements of ASEAN+3 have been positively promoting trade in southeast and east Asia

RASIONALITAS JERMAN BEKERJASAMA DENGAN ASEAN DALAM PENGEMBANGAN ENERGI TERBARUKAN

This research was motivated by the cooperation between Germany and ASEAN in the development of renewable energy. Germany is a pioneer country in renewable energy policy. In this regard, Germany strongly supports efforts and commitments to transition energy from fossil to renewable materials carried out by developing countries. This commitment is based on the implementation of the Paris Agreement and EU policy. The development of German renewable energy has been carried out since 1990 in their national renewable energy legislation. The development of German renewable energy has also been included in the outlook for SDG number 7. In this regard, Germany is committed to providing assistance and cooperation in energy development in developing countries, including ASEAN member states. ASEAN was chosen as a cooperation partner because member countries are still in the use of fossil energy and are in the stage of energy transition period. ASEAN member countries that are experiencing an increase in population and economy cause large energy needs so that the need for fossil energy is still fairly high. Therefore, the selection of ASEAN as a partner of German cooperation is an advantage for Germany in influencing Germany's position as a pioneer in the development of renewable energy in ASEAN. This research uses an explanatory method with data collection in the form of literature studies. The Rational Actor Model as a theoretical basis to explain Germany's rationality in cooperation with ASEAN

FDI EFFECTS OF ASEAN INTEGRATION

For the past two decades, ASEAN Member States have pursued intra-regional market liberalization in order to provide more flexibility to multinationals and therefore promote the region as a competitive production platform. Attracting FDI has been a key objective of this regional project. This paper describes and analyzes recent trends in FDI to and among ASEAN countries, mainly comparing FDI patterns before and after the Asian Crisis, to characterize and assess the region?s strategies to liberalize and facilitate investment. We find that FDI flows to ASEAN countries suffered after the Asian Crisis but have picked up since 2005. Moreover, ASEAN FDI is dominated by Singapore. In addition, the sectoral distribution of FDI has changed in some members of ASEAN (i.e., Malaysia, Singapore, and Thailand) but not in others. We also perform an econometric analysis of the determinants of FDI to check for ASEAN-specific changes in FDI in the post-Crisis period. Our results, after controlling for a host of factors, indicate that ASEAN countries suffered a fall in total FDI but experienced an increase in intra-regional FDI after 1998. Moreover, we do not find any significant impact of FDI in China on ASEAN FDI.ASSOCIATION OF SOUTH EAST ASIAN NATIONS (ASEAN), FOREIGN DIRECT INVESTMENT (FDI), ECONOMIC INTEGRATION, ASEAN INVESTMENT AREA, KNOWLEDGE CAPITAL MODEL

Interdependence in ASEAN: An Assessment of the ASEAN Preferential Trading Agreements (PTA)

This article examines whether the ASEAN Preferential Trading Arrangements have increased the level of interdependence among ASEAN countries in the area of trade. Specifically, whether such interdependence has brought about institutional and economic changes such as tariff reduction and nontariff barriers among ASEAN countries.tariff, trade sector, ASEAN, ASEAN tariffs

Disentangling Market Access Effects of Preferential Trading Arrangements Application for ASEAN Members under an ASEAN-EU FTA

The paper develops two synthetic measures at the HS-10 level to depict effective market access for a country receiving preferential access and applies these to the market access ASEAN members would receive on impact following the implementation of an FTA with the EU. First, the measures show that current effective market access for ASEAN EBA members is cut in half by the preferences granted by the EU to countries that compete with these countries in the EU markets. Second, the measures show that about one quarter of the preferential margin under the proposed FTA for EBA members would be lost as a result of preferential access granted to ASEAN GSP members. Third, disaggregated estimates of the restrictiveness of rules of origin confirm that rules are more restrictive for products with higher preferential margins and that ASEAN countries usually face tougher rules of origin in the EU because of the composition of their exports.market access, Rules of Origin, preferential trade agreements, ASEAN