The political economy of industrial integration in ASEAN
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Date
2023
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Abstract
This paper deals with the formation and the implementation of various industries cooperation schemes within ASEAN in the past and present and focuses on the respective role of Japanies companies within this process.It especially highlights the current development as related to the ASEAN industrial cooperation (AICO) scheme which was started in late 1996 and which is regarded as the direct preseccssor of the ASEAN free trade area (AFTA) to be implemented in 2002. Based on his own empirical research in Southeast Asia and Japan, the author analyzes the ongoing integration process in ASEAN. This paper presents and explains the political barriers to a deeper industrial integration that still exist despite regional liberalization efforts dating back as far as 1976. Japanese companies are identified to be the distinctive key players within the industrial integration process not only by dominating regional production activities but also by partly taking over the formulation of economic policies at the ASEAN level since the 1980s. This is argued to be the result of a collusion of interests between Japanese companics and ASEAN governments, with both parties regarding this to be the only viable approach to overcome national rivalries and domestic opposition towards a necessary liberalization of ASEAN industries. Despite the persisting obstacles towards a deeper industrial integration of Southeast Asia.it is argued that this collaboration will continue to determine the regional integration of ASEAN industries combination prolonging the central role for Japanese companies within the industrialization process of Southeast Asia.
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Political economy, Industrial relations, Economic integration, Industrial cooperation, ASEAN free trade area, Southeast asia, ASEAN, Japanese companies