The Global Crisis and Economic Integration: Implications for the ASEAN Economic Community

Many developing Asian countries, particularly the ASEAN, had recovered from the 1997 Asia crisis, as a result of both domestic stimulus packages and IMF rescue policy. Other bilateral, regional trade and investment liberalisation agreements have also been important contributing factors to the region's sustainable long-run growth. However, the emergence of the global financial crisis (GFC) due chiefly to the US financial institution excesses during 2008/09 has deeply affected the global economy especially these developing Asian economies and their economic integration. The paper aims first to examine the causal and consequential relationship between the GFC, economic growth and current trade agreementss in developing Asia. It then discusses major policy implications particularly for Thailand and the ASEAN Economic Community to mitigate the negative effects of the GFC as well as to enhance post-GFC benefits from both bilateral and regional trade agreements.

Keywords: Global Financial Crisis, Regional Growth, Free Trade Agreements, Trade and Investment Policy, Thailand's Growth, ASEAN Economic Community.

JEL: F14, F 15