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Jarita Duasa - Regional Economic Integration in East and Southeast Asian: Pathway for Convergence

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Jarita Duasa Regional Economic Integration in East and Southeast Asian: Pathway for Convergence
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Regional Economic Integration in the East and Southeast Asia: Pathway for Convergence by Jarita Duasa and Nursilah Ahmad provides empirical investigation of possible regional integration among East Asian countries based on human development indicators which are rarely being analysed in international trade textbooks. Empirical investigation on this issue is conducted using recent methods of analysis in which rigorous results can be inferred as an application of integration analysis. The indicators used in the analysis to draw the conclusion are not limited to economic indicators but also on

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Jarita Duasa Nursilah Ahmad USIM Press Universiti Sains Islam Malaysia Bandar - photo 1

Jarita Duasa Nursilah Ahmad USIM Press Universiti Sains Islam Malaysia Bandar - photo 2

Jarita Duasa Nursilah Ahmad USIM Press Universiti Sains Islam Malaysia Bandar - photo 3

Jarita Duasa

Nursilah Ahmad

USIM Press

Universiti Sains Islam Malaysia

Bandar Baru Nilai

Negeri Sembilan

ePUB 2021

Universiti Sains Islam Malaysia

All rights reserved; no part of this publication may be reproduced, stored in aretrieval system, or transmitted in any form or by any means, electronic, mechanical,photocopying, recording or otherwise without prior written permission from USIMPress.

Published in Malaysia by:

USIM Press

Universiti Sains Islam Malaysia

71800 Bandar Baru Nilai

Negeri Sembilan Darul Khusus

Tel: 06-798 6271/6272 | Fax: 06-798 6083

www.penerbit.usim.edu.my

info.penerbit@usim.edu.my

USIM Press is a member of the

Malaysian Scholarly Publishing Council (MAPIM)

National Library of Malaysia Cataloguing-In-Publication-Data

Jarita Duasa

REGIONAL ECONOMIC INTEGRATION IN EAST AND SOUTHEAST ASIA : PATHWAY FOR CONVERGENCE / Jarita Duasa, Nursilah Ahmad.

ISBN 978-967-440-828-2

eISBN 978-967-440-878-7

1. International economic integration.

2. International economic integration--International unification.

3. Regional economics--International unification.

4. Asia--Economic integration.

5. Southeast Asia--Economic Integration.

6. Government publication--Malaysia.

I. Nursilah Ahmad. II. Title.

337.1

This e-book is best viewed with iBooks. USIM Press shall not be liable for any loss or damage caused by any changes due to usage of any applications.

TABLE OF CONTENTS


Introduction
Understanding Economic Integration
Income Convergence or Divergence
Beyond Economic and Political Reasons
Summary

Introduction
Asias Rise in the 21st Century
Integration in Asean
Regional Economic Integration in East Asia
Summary

Introduction
Economic Growth in Islam
Sustainable Development Concept
The Debate on Sustainability
Conventional Approaches
The Islamic Perspective
Summary

Introduction
Human Development and Growth Indicators
Economic Indicators
Environmental Indicators
Health Indicators
Social Indicators
Summary

Introduction
Model Development
The Linear Model: Augmented Dickey Fuller (ADF) Test
Kapetanois et al. Non-Linear Stationary (KSS) Test
Combo Analysis
Country-Specific Analysis
Summary

Should East Asia Countries Converge with Japan or Singapore?
Excursus: Islamic Values in Integration

DEDICATION

To our family, friends and avid readers of economics The world changes constantly But there are certain economic fundamentals that do not change


LIST OF TABLES

Table 2.1:
Intra and extra-ASEAN trade, 2015
Table 2.2:
ASEAN trade by selected partner country/region,2015
Table 2.3:
ASEAN member states: Selected keymacroeconomic indicators, 2017
Table 2.4:
ASEAN member states: Selected basicindicators, 2017
Table 2.5:
Accelerating AFTA for the original ASEAN-6countries, 2000 2002
Table 4.1:
Human development component and indicators
Table 5.1:
ADF test of GDP growth
Table 5.2:ADF test of exchange rates
Table 5.3:ADF test of exports
Table 5.4:ADF test of imports
Table 5.5:ADF test of fixed telephone subscription
Table 5.6:ADF test of mobile telephone subscription
Table 5.7:ADF test of death rate
Table 5.8:ADF test of life expectancy
Table 5.9:ADF test of CO2emissions
Table 5.10:ADF test of arable land
Table 5.11:Results of non-linear (KSS) test for GDPgrowth
Table 5.12:Results of non-linear (KSS) test for exchangerates
Table 5.13:Results of non-linear (KSS) test for imports
Table 5.14:Results of non-linear (KSS) test for exports
Table 5.15:Results of non-linear (KSS) test for fixedtelephone subscription
Table 5.16:Results of non-linear (KSS) test for mobiletelephone subscription
Table 5.17:Results of non-linear (KSS) test for deathrate
Table 5.18:Results of non-linear (KSS) test for lifeexpectancy
Table 5.19:Results of non-linear (KSS) test for CO2 emissions
Table 5.20:Results of non-linear (KSS) test for arableland
Table 5.21:Summary of empirical results of stationaritytests


LIST OF FIGURES

Figure 2.1:Intra-regional trade volume of goods andservices in ASEAN-5 as a percentage of nominal GDP,2005-2010
Figure 2.2:Symmetry of demand and supply shocks inASEAN-5 and Euro zone area
Figure 2.3:Economic integration and asymmetric shocks:European Commission vs. Krugman views
Figure 4.1:GDP growth (%) 79
Figure 4.2:Exchange rates (Local domestic currency/USD)
Figure 4.3:Imports (Million USD, in natural log)
Figure 4.4:Exports (Million USD, in natural log)
Figure 4.5:CO2 emissions (Metrictons per capita)
Figure 4.6:Arable land (Percentage of land area)
Figure 4.7:Death rate, crude (Per 1000 people)
Figure 4.8:Life expectancy at birth (Total years)
Figure 4.9:Primary education, duration (Years)
Figure 4.10:Mobile cellular telephone subscription(Million, in natural log)
Figure 4.11:Fixed telephone subscription (Absolute value,in natural log)


PREFACE

This book attempts to analyse the issue of whether or not the EastAsian countries should adopt a more structured or institutionalisedapproach in their efforts toward greater regional economic integration.It is written in response to the continued slowdown in global economicgrowth post 2007/2008 financial crisis. The reasons for a morestructured approach to regional economic integration and cooperationcan be extended beyond the political and economic considerations,that is, through human development indicators which covereconomic, social, health and environmental conditions. The disparity,particularly between the middle-to-low income countries of East Asiaand other countries, echoes the concern expressed in the 1999 UNDPHuman Development Report. Inequality has been rising within andbetween countries. As a result, the income gap has widened. Thebook argues that the gap could be narrowed through convergence inhuman development at the regional level. Hence, the book examinesthe possibility of a more structured or institutionalised regionalcooperation in East Asia based on human development components.
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