Analysis of Intra-ASEAN Trade and Production Network

In the current trade environment, which emphasizes diversifying supply chains for securing economic security, ASEAN emerges as a key partner for Korea in supply chain diversification. Although individual ASEAN countries may not be attractive markets, but if ASEAN successfully builds a single market and production base as planned, ASEAN is expected to become a major partner in economic diversification. Therefore, this study empirically analyzes the effects of ASEAN economic integration on intra-regional trade, and examines the degree of economic integration occurring within ASEAN by analyzing the GVC production linkages among ASEAN countries. Unlike previous studies that have used the gravity model to analyze the effects of ASEAN’s AFTA, ATGIA, or ASEAN+1 bilateral FTAs on trade separately, this study conducts an empirical analysis considering both ATGIA and ASEAN+1 bilateral FTAs. Additionally, through GVC analysis utilizing the value-added trade data, this study examines both intra and extra ASEAN trade structures, and provides implications derived from the findings.