The Economic Impact of China’s Industrialisation on ASEAN: an Inter-Regional Approach

By using the inter-regional input-output approach, this paper attempts to analyse the intra-industry economic linkages and potential impacts of China s industrialisation on ASEAN economies. Our linkage effects strongly suggest that there is a strong argument to believe that a further developed China with greater market openness for the manufactured goods will make it an increasingly powerful engine of growth in the ASEAN region. Moreover, the empirical results also reveal that China s manufacturing sector generates the highest output and income effects on the ASEAN region compared to other sectors.