ASEAN – A Move Towards Positive Integration

The paper studies growth of Association of South East Asian Nations (ASEAN), especially after 1990s. The focus is also on the economic integration which distinguishes between negative integration (removing barriers to integrate, such as internal tariffs) and positive integration (creating union-wide markets and institutions by positive actions) of ASEAN. The main element of the paper is intra-industry trade for the year of 2000 and 2006 of 10 nations of ASEAN. The paper computed most traded thirty commodities with Harmonised System (HS) with two digit commodity classifications by using Grubel - Lloyd index which results in an increment in growth, trade, investments and subsequently raising standards of living of ASEAN member countries and other emerging and developing countries in Asia due to positive integration. This aspect should be highlighted to strengthen development of Asia in future.