Comparative Analysis of Convergence on Regional Economic Integration : The Eurozone and ASEAN

地域経済統合の収束状況に関する比較研究 : ヨーロッパとアセアン

Mutaqin Zaenal

There was a fundamental change in international relations after World War II; regionalization as a part of economic integration among neighboring countries has since become a trend, with the goal of improving the welfare of all citizens concurrently. Instilling deeper economic integration, according to Baldwin and Wyplosz (2006), will contribute to medium- and long-term economic performance. Generally speaking, economic integration will improve efficiency, increase GDP per worker, and provide more investment per worker. From this point, the capital per labor ratio starts to rise towards new, higher-equilibrium value and faster growth of output per worker. Long-term effects from economic integration are faster knowledge creation and absorption.

Since the economic crisis in 1997, ASEAN has shown interest in developing policies to set up greater regional exchange rate stability (Bayoumi, Eichengreen and Mauro, 2000) and the Eurozone was seen as the ideal example. The story of crisis however repeated in the area of most developed countries situated or Eurozone. A decade after the Euro, the crisis has erupted in the Eurozone, suggesting that common currency might be less attractive. Before being pulled into the crisis that exploded in 2007, the Eurozone demonstrated stability; however, fallout from the crisis made it clear that the euro had been unprepared for such severe conditions (Lapavitsas et al, 2010).……

Economics [ 330 ]

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広島大学