HAS TRADE BECOME MORE INTEGRATED IN THE ASIA PACIFIC ECONOMIC COOPERATION REGION?

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HAS TRADE BECOME MORE INTEGRATED IN THE ASIA PACIFIC ECONOMIC COOPERATION REGION?

In this study the degree of integration members of APEC have achieved is assessed using trade intensity indices. Trade intensity indices summarise information on the geographical, social and historical links two trading nations have, along with the particular commodity composition of their trade, relative to how they trade with the rest of the world. Indices are calculated for the period 1995-97 and compared with the results of an earlier study on the region . It was found that the APEC nations have a high degree of trade intensity with one another, which is not due to the complementary nature of the goods they produce. Further, it was found that this trading pattern existed well before the establishment of the APEC agreement.