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The issue of free trade and employment has been aconcerned for many countries for a long time. It seems that there exists a tradeoff between them. This paper looks back at the theories from the classical economics and discusses the role of free trade in economics. It also discusses the relationship between free trade and a nation’s wealth, and the problems of free trade we face today. The theory is not challenged in the paper; however, the multi-functional state engaged within the market for full employment is included. The statistics and data of ASEAN are utilized to explain and examine the theory. A few ways of government intervention are introduced and regulations that are detrimental to employment are also discussed.

Free Trade and Employment in the ASEAN: From Theory to Empirical