ABSTRACT
China’s rise today presents a whole set of economic, political, and social challenges. For empirical economists, estimating the net effects of a rising China remains difficult due to its sheer size and its ambiguous economic progress.2 As Southeast Asia borders China, it must face these challenges directly. The exportoriented Southeast Asian economies and their ability to attract foreign direct investment (FDI) have to adapt to the new dynamics of comparative advantage with regard to a rising China.3 ASEAN policymakers have sought to institutionalize a regional policy framework and advance regional integration with the global economy, even though major economic disparities exist within ASEAN.
