| This research study examines economic integration of ASEAN using economic parameters such as GDP growth rate, inflation rate, official exchange rate, deposit rates, current account balance to GDP, trade to GDP, foreign direct investment to GDP, tax revenue to GDP and total ASEAN intra-trade. This study looks at the level of economic integration of ASEAN member states by using a Pearson's correlation coefficient of a two-tailed test. There are nine null hypothesis represented which state the statistical significant of the economic parameters. The time series data is collected from World Bank, IMF, ASEAN secretariat and Economist Intelligence Unit's for each ASEAN member state. The results showed that hypothesis one to six are rejected since there are strong evidence of correlation among ASEAN members states with the strongest evidence is in hypothesis three, Official exchange rate movement. Hypothesis seven, eight and nine are also rejected since there is medium evidence of correlation among ASEAN member states. In conclusion, ASEAN qualifies for an optimum currency area since there are evidence of correlation among its members, increase intra-trade and also high labor mobility. However, on the political front, which is an important criterion in the success of the ASEAN union, ASEAN leaders are lacking in focus because they are pre-occupied their political agenda on nationalist and domestic problems. I supported Kwan's approach of multi-track economic integration. The first phase will start from Singapore and Brunei. Then, it will be followed by Malaysia and Thailand on the second stage. Philippines and Indonesia will join in for the third stage and the rest of Indochina countries, Vietnam, Myanmar, Laos and Cambodia, will be joining in at later stage. |
