The Role of Economic Integration Policies in Increasing Economic Growth in Selected Southeast Asian Countries

Southeast Asian countries have come together to form the Association of Southeast Asian Nations (ASEAN), especially the formation of the ASEAN Economic Community (AEC) in 2015, which has united countries into an AEC economic bloc. The aims of the study are to assess the impact of integration policies and the role of the AEC on economic growth during the period 1970–2022. Using quantitative analysis methods through OLS, FEM, REM and long-term impact analysis through the ARDL panel, the research results show that a higher level in economic integration is consistent with a higher level of economic growth. Specifically, FDI has a positive impact on economic growth in the short term and the positive impact is stronger in the long term. At the same time, trade openness has a negative impact on growth in the short term, but this effect is no longer in the long term. The result affirms the very positive nature of the AEC for international integration and contribution to economic growth in the Southeast Asian region. Finally, this study has some policy implications for Southeast Asian countries in the context of implementing economic integration policies and setting growth targets.