Is a regional trade bloc a prelude to multilateral trade liberalization?

The Influence of ASEAN Bond Market Integration in the Philippines’ Inflationary Pressures, Credit Expansions, and its Challenges

“…However, Ventouri (2018) argued that with the "competition-fragility view", competition could create a level playing field (which can lead to efficiencies) whilst also promoting financial stability by limiting bank's market power to charge high rates on household loans which could eventually lead to high non-performing loan if not lessen. Nevertheless, Bahamrumshal et al ( 2007) stated that open regionalism could integrate domestic policies with globalization's forces and could also encourage "outward-oriented" progress, both of which supported the argument of Leamer (1994) that regionalism could eliminate political constraints and ramifications (which was the biggest challenges of global free trade), which signified that regionalism was the only way to carry out global free trade (Leamer, 1994 as cited in Baharumshah et al, 2007).…”

“…The Philippines' role in the ASEAN association could be used to its advantage. According to Baharumshah et al (2007), almost 97% of the global trade comprises economies that were members of a trading arrangement with others at best. Joining regional integration with other economies through regional trading arrangements (RTAs) broadens the scope of the integration with the increasing number of members, thus reducing risks to external shocks, increasing productivity, investment, and employment, thus achieving economies of scale, improving living standards, and progressing bargaining status internationally.…”

“…ASEAN was only meant to be a vehicle for competition and liberalization as the region's participation in the world market was the ticket to an effective development process (Baharumshah et al, 2007). While it is worth mentioning that the Philippines was successful in sustaining its growth momentum pre-GFC (global financial crisis) due to the strong macroeconomic fundamentals, which was proven by having a strong external position, benign inflation, and a resilient banking system (BSP, 2019), it is still important to emphasize that the Philippines is still a developing country.…”

The application of gravity equation while accessing the environment of Pakistan-ASEAN technological trade flows

“…Besides, Naya & Plummer (2006) have also explored the prospect of referring the ASEAN regional grouping to a 'normal economic bloc.' Further contributions discuss many topics, for example, the evaluation of how Asia's (including ASEAN) most productive way to build Batra's (2006) economic inclusion and whether regional trade blocs are precursors to multilateral trade liberalization Baharumshah et al (2007). Thorbecke's (2015) analysis estimated that Chinese exports to the United States are an outlier in a gravity model.…”