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This paper attempts to shed new light on further deepening the economic integration process in Southeast Asia using a quantitative assessment of the potential for further developing intra-regional trade. It is evident that ASEAN's export space is expanding faster than the world average and that there is still room for ASEAN countries to further develop the role of their intra-regional trade. To improve its export potential, ASEAN should liberalize trade not only intra-regionally but also globally. It could be in ASEAN's interest to accelerate the pace of regional integration under frameworks that involve the participation of non-ASEAN countries, especially an ASEAN Framework for Regional Comprehensive Economic Partnership.

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Trade imbalances between the United States and China have become a major concern of international macroeconomics. This paper shows that the existence of outsourcing hides the true scale of the problem. Copyright 2010 The Authors. Journal compilation 2010 Blackwell Publishing Asia Pty Ltd