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Domestic Actors, Market Reform and Regional Integration in Southeast Asia

Domestic Actors, Market Reform and Regional Integration in Southeast Asia

Volume 1,Number 1,Spring 2010 pp. 95-115(21)
Research Article
2010/3/1
Trinidad, Dennis D.
The article examines why ASEAN economic integration varies in the degree to which member countries liberalize their economies by looking at the policy preferences of political and economic elites. I argue that FDI, particularly from Japan, has produced a new mindset that was favorable to liberalization among ASEAN-4 countries (Malaysia, Indonesia, the Philippines, and Thailand). The introduction of modest market reforms in the manufacturing sector, in particular, has led to increased regional integration since the 1990s. However, the kind of integration that ASEAN has reflects the different levels of commitment of domestic actors to liberalization. This, for instance, explains the exemptions inserted in various ASEAN integration schemes such as the exclusion and sensitive lists in CEPT, and the reservation list in ACIA.
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