Cover IMF Working Papers
Buy Book in Print
ASEAN-5: Further Harnessing the Benefits of Regional Integration amid Fragmentation Risks
Author:
Nuri Baek
Search for other papers by Nuri Baek in
Current site
Google Scholar Close
,
Kaustubh Chahande
Search for other papers by Kaustubh Chahande in
Current site
Google Scholar Close
,
Kodjovi M. Eklou https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Kodjovi M. Eklou in
Current site
Google Scholar Close
https://orcid.org/0009-0004-1074-6399
,
Mr. Tidiane Kinda
Search for other papers by Mr. Tidiane Kinda in
Current site
Google Scholar Close
,
Vatsal Nahata
Search for other papers by Vatsal Nahata in
Current site
Google Scholar Close
,
Umang Rawat https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Umang Rawat in
Current site
Google Scholar Close
, and
Ara Stepanyan
Search for other papers by Ara Stepanyan in
Current site
Google Scholar Close
Series:
IMF Working Papers
Volume/Issue:
Volume 2023: Issue 191
Language:
English
Publication Date:
15 Sep 2023
DOI:
https://doi.org/10.5089/9798400253706.001
ISBN:
9798400253706
ISSN:
1018-5941
Pages:
46
Keywords:
Trade integration; financial integration; digitalization; fragmentation risks; goods export sophistication; firm level result; firm growth; firm Growth; external finance dependence; Financial sector development; Exports; Global; Asia and Pacific
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
Download PDF (3.1 MB) Download Epub
The ASEAN-5 region, which comprises Indonesia, Malaysia, the Philippines, Singapore, and Thailand, has benefited substantially from its integration to the world economy, particularly through trade. Rising risks of geoeconomic fragmentation could reverse some gains reaped from globalization over the past decades. In this context, advancing regional integration among ASEAN-5 members has the potential to enhance the region’s resilience against external headwinds. This paper shows that despite sizeable progress, particularly in regional trade integration, there is room to advance financial integration, which also lags trade integration in ASEAN-5. Empirical findings from the paper illustrate that a higher degree of regional financial integration could generate sizeable output gains for the region. Using firm-level data, the paper highlights that digitalization, an area where the region is thriving, can support regional integration by helping firms better integrate into global value chains, with the benefits being stronger for small and medium sized enterprises. The results also suggest that digitalization can help firms move up the value chain through the production of more sophisticated products, often coined as higher export sophistication.
  • Collapse
  • Expand
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund