Abstract Using a structural gravity model, this paper measures the bilateral border effects of manufacture industry among ASEAN 10+3, based on 1511-3720 manufacture industry at the ISIC (rev3) four- digit level. It then compares the role which policy barriers such as tariff and non-tariff play in border effects with that of non-policy barriers such as information-related costs, home bias in preference and cultural similarity, the result shows that the border effects in ASEAN which has established the free trade area are not the lowest, the role which policy barriers play in border effects is more than that of non-policy barriers, the role played by book trade is the most and the role played by home bias in preference is the least among non-policy barriers. Therefore, the most important measure is to reduce non-tariff barriers and strengthen cultural communication in order to further promote economic integration in this region.
HU Tong-Sheng,JIU Han. The Measurement & Determinants of National Border Effects in ASEAN 10+3 Manufacture Industry. Economic Survey, 2015, 32(3): 041.