Economic Integration in Asia: Quo Vadis Malaysia?

Abstract

Neo-liberal globalization has accelerated the space of economic integration in Asia, particularly between the rising superpowers of China and India and other Asian nations. In this connection, this paper examines the degree of economic integration between Malaysia and the rapidly developing economies of China and India on the one hand and the United States and Japan on the other. This study shows that Malaysia is more integrated with China and India than with the United States and Japan. It is not that global integration is becoming less significant in Malaysia but that regional integration is becoming more deterministic.

Keywords:

• China and India
• Asian economy
• TYDL causality
• economic integration

JEL Classifications:

• F15
• F36
• F37

Acknowledgement

The first author would like to acknowledge the Universiti Sains Malaysia Short Term Research Grant No. 304/PSOSIAL/638054.

Notes

¹The trade and investment shares data are presented in Tables A1 and A2.

²Results will be provided upon request.