Institute for Economic and Social Research – Faculty of Economics and Business – Universitas Indonesia

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

Saturday July 9th, 2022

Author : Kiki Verico

Executive Summary

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.

Download (PDF, 954KB)

Recent Post

The Impact of COVID-19 on Voter Turnout in the 2020 Regional Elections in Indonesia: Do Voters Care About Health Risks?

Thursday March 21st, 2024

Macroeconomic Analysis Series: BI Board of Governor Meeting, March 2024

Wednesday March 20th, 2024

Dampak Ekonomi Penyelenggaraan Pertunjukan Musik: Konser Taylor Swift dan Coldplay di Indonesia dan Singapura (Trade and Industry Brief, Special Report, Maret 2024)

Wednesday March 6th, 2024

Macroeconomic Analysis Series: Monthly Inflation, March 2024

Monday March 4th, 2024

Related Post

COVID-19 on Voter

Thursday March 21st, 2024

The Impact of COVID-19 on Voter Turnout in the 2020 Regional Elections in Indonesia: Do Voters Care About Health Risks?

Wednesday March 20th, 2024

Macroeconomic Analysis Series: BI Board of Governor Meeting, March 2024

Wednesday March 6th, 2024

Dampak Ekonomi Penyelenggaraan Pertunjukan Musik: Konser Taylor Swift dan Coldplay di Indonesia dan Singapura (Trade and Industry Brief, Special Report, Maret 2024)