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This paper seeks to explore the effects of ASEAN Economic Community (AEC) Blueprint adoption since 20 November 2007 on the bilateral manufacturing trade between the ASEAN member countries and their trading partners. Ten ASEAN member countries and their 39 trading partners are considered in this study. The gravity model is estimated on a set of panel data over the sample period of 1995 to 2014. Overall, it is found that AEC has created substantial trade creation effects for the exports of tobacco & manufactured tobacco substitutes, and limestone materials for manufacture of lime. On the other hand, there are substantial trade diversion effects for the exports of the fur-skins & artificial fur manufactures, manufactures of plaiting material & basketwork, miscellaneous manufactured articles, as well as the machines & apparatus.

The Effects of ASEAN Economic Community (AEC) Blueprint Adoption on Intra-ASEAN Trade on Manufacturing Products