THE EFFECT OF ASEAN FREE TRADE AREA (AFTA) ON INTRA-ASEAN TRADE

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THE EFFECT OF ASEAN FREE TRADE AREA (AFTA) ON INTRA-ASEAN TRADE

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Title: THE EFFECT OF ASEAN FREE TRADE AREA (AFTA) ON INTRA-ASEAN TRADE
Author: Amaliawiati, Lia
Abstract: The ASEAN Free Trade Area (AFTA) was formed in 1992, the basic feature of the AFTA is the liberalization of trade in the region through the elimination of intra-regional tariffs and non-tariff barriers, AFTA is expected to make manufacturing sectors in ASEAN more efficient and lead to compete in the global market, This agreement continued into the ASEAN Economic Community (AEC) enforced starting January 2016. The aim of this study to investigate the effect of trade creation on intra-ASEAN trade among five ASEAN member countries. To analyze trade creation used modified of gravity model and this model will be estimated using least squares. The data used is panel data from 2000 to 2013 (before and after global crisis in 2008). The results show that there are trade creation (both before and after the economic crisis), it’s mean there is a shift in consumption domestic from high-cost imported goods from outside ASEAN countries to imports low cost from ASEAN member countries. Besides that coefficient value shows trade creation after the crisis is smaller than before the crisis reflects that the economic crisis has reduced the value of ASEAN trade
URI: http://repository.widyatama.ac.id/xmlui/handle/123456789/7834
Date: 2016-11-25


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