Dynamics of Trade Characteristics, Competition Networks, and Trade Fragility in ASEAN Economies
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This paper analyses the trade characteristics, competition networks, and fragility of global trade in goods in the Association of Southeast Asian Nations (ASEAN) economies, particularly in the context of the coronavirus disease (COVID-19). The study covers the 10 ASEAN Member States and 110 trade partners, using the Harmonized System (HS) 6-digit product classification from 2010 to 2021. The findings reveal that ASEAN dominates with trade complementarity. Dense and intense competition networks are found. The electrical and machinery imports from central players are highly sensitive to shocks, with electronics also becoming susceptible to shocks after the pandemic. The study also shows that liquefied natural gas products and countries such as Singapore, Indonesia, Brunei, and Myanmar experienced increased shocks. The research underscores the importance of policymakers prioritising their understanding of trade linkages and potential spillover effects when formulating policies to mitigate the impact of shocks. The findings have implications for policymakers, highlighting the need for them to take a holistic approach when devising policies and strategies to mitigate the adverse effects of global shocks.
