Regional Integration and Industrial Growth among Developing Countries : The Case of Three ASEAN Members

Has the revival of the Association of Southeast Asian Nations (ASEAN) in the early 1990s affected the industrial growth of Indonesia, Malaysia, and the Philippines? The author uses two mechanisms to capture this potential impact: scale effects, and...

Full description

Bibliographic Details
Main Author:	Madani, Dorsati H.
Format:	Policy Research Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2014
Subjects:	ANDEAN PACT AVERAGE TARIFF BUSINESS CYCLE CAPITAL STOCK COAL CONSTANT RETURNS TO SCALE COST MINIMIZATION DEBT DEVELOPED COUNTRIES DOMESTIC INDUSTRIES DOMESTIC INDUSTRY DOMESTIC PRODUCERS ECONOMIC INTEGRATION ECONOMIES OF SCALE ELASTICITY ELASTICITY OF SUBSTITUTION EMPIRICAL ANALYSIS EMPIRICAL STUDIES ENDOGENOUS VARIABLES EXCHANGE RATES EXERCISES EXPLOITATION EXPORTS EXTERNALITY FINAL GOODS FOREIGN COMPETITION FOREIGN DIRECT INVESTMENT GROSS OUTPUT GROWTH RATE GROWTH THEORY HUMAN CAPITAL IMPACT OF TRADE IMPACT OF TRADE LIBERALIZATION IMPERFECT COMPETITION IMPORT PRICES IMPORT QUOTAS IMPORTS INDUSTRIAL PRODUCTION INDUSTRY TRADE INNOVATION INPUT-OUTPUT TABLES INTERMEDIATE GOODS INTERMEDIATE IMPORTS INTERMEDIATE INPUTS INTERNATIONAL TRADE INTERNATIONAL TRADE POLICIES LABOR PRODUCTIVITY LAISSEZ FAIRE LIBERALIZATION OF TRADE MEASURES OF INTEGRATION METALS NATIONAL MARKET OIL OIL PRICE PH POSITIVE EXTERNALITIES PRICE INDEX PRODUCERS PRODUCTION EFFICIENCY PRODUCTION FUNCTION PRODUCTION PROCESS PRODUCTIVITY PRODUCTIVITY GROWTH QUOTAS REDUNDANCY REGIONAL INTEGRATION REGIONAL TRADE REGIONALISM RETURNS TO SCALE SCALE EFFECT SCALE EFFECTS SPECIALIZATION TARIFF LEVELS TARIFF RATE TARIFF RATES TARIFF REDUCTION TARIFF REDUCTIONS TECHNOLOGICAL PROGRESS TECHNOLOGY TRANSFER TIME SERIES TOTAL FACTOR PRODUCTIVITY TRADE DATA TRADE DIVERSION TRADE FLOWS TRADE LIBERALIZATION TRADE PARTNERS TRADE POLICIES TRADE REFORM TRADE REGIME TRADE RESTRICTIONS TRADE VOLUMES UNILATERAL LIBERALIZATION WAGES WORKERS WORLD TRADING SYSTEM
Online Access:	http://documents.worldbank.org/curated/en/2001/10/1615099/regional-integration-industrial-growth-among-developing-countries-case-three-asean-members http://hdl.handle.net/10986/19509

Description
Summary:	Has the revival of the Association of Southeast Asian Nations (ASEAN) in the early 1990s affected the industrial growth of Indonesia, Malaysia, and the Philippines? The author uses two mechanisms to capture this potential impact: scale effects, and intermediate imports variety. She performs the analysis on twenty two industries (at the three-digit level of the International Standard Industrial Classification) over the period 1971-95. The results show significant heterogeneity in industry-level returns to scale. Moreover, the three ASEAN members have very small, mostly negative cross-industry scale effects. As a result, they may not achieve large, or across-the-board gains from their regional arrangement through scale effects. The author finds unexpected results with respect to the role of intermediate imports variety in industrial growth. She finds no support for the hypothesis that non-regional (rest of the world) suppliers, and goods variety have a positive effect on ASEAN industries through the channel of imported intermediate inputs. The regional variety measure, however, seems to have a positive effect on the output growth of a handful of industries. This result seems due to the fact that these countries have long had a strong intra-regional, and intra-industry trade, whose history predates, and outweighs the ASEAN revival.

Regional Integration and Industrial Growth among Developing Countries : The Case of Three ASEAN Members

Similar Items