Manufacturing Convergence of ASEAN: Too Good to Be True?
Manufacturing sector was one of the main drivers of economic growth at ASEAN and it is expected to expand. Although ASEAN is said to be the monetary area with various types of financial improvements and experiencing financial development, majority of the ASEAN countries are classified as a lower...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | en |
| Published: |
HRMARS
2020
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| Subjects: | |
| Online Access: | http://ir.unimas.my/id/eprint/35642/1/convergence2.pdf http://ir.unimas.my/id/eprint/35642/ https://hrmars.com/papers/detail/IJARBSS/8568/Manufacturing-Convergence-of-ASEAN-Too-Good-to-Be-True http://dx.doi.org/10.6007/IJARBSS/v11-i14/8568 |
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| Summary: | Manufacturing sector was one of the main drivers of economic growth at ASEAN and it is expected
to expand. Although ASEAN is said to be the monetary area with various types of financial
improvements and experiencing financial development, majority of the ASEAN countries are
classified as a lower centre wage nation. The study uses the non-linear time varying factor approach
on finding structural convergence of value added of manufacturing sectors in ASEAN. Alternatively,
if the result shows there are convergence among the country, it could be an indicator of possible
deeper economic integration and perhaps feasibility of monetary union. Countries that converges
with other countries show that the ability of its to catch up with the higher one despite having
different magnitude to converge. As stated in the ASEAN Economic Community (AEC), as a member
the country must have the equitable of its economic growth and full integrated region in the global
economic. The results indicate that there is no structural convergence in manufacturing sector in
ASEAN, however, there are subgroup that converges to three club convergence with core group
consist of Philippines and Singapore. The study concludes that manufacturing sector in ASEAN
experiences strong similarity in its manufacturing sector and better prospect for convergence in the |
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