Abstract:
The European Union (EU) was created by six founding countries in 1957 following
European Coal and Steel Community in 1952 and has grown tu 27 members. Effect uf
increasing number of countries occurs when there have been five enlargements, with
the largest occurring un May 1, 2004, when 10 countries joined, and the most recent
on January 1, 2007, when Bulgaria and Romania joined. In order to join the
European Union, a state needs to fulfill the economic and political conditions known
as the Copenhagen criteria. In this paper, we analyzed effect of European Union
enlargement towards ASEAN economic growth to indicate that European Union
enlargement seems to be significantly in influencing in terms of trade for ASEAN
members like Malaysia, Singapore, Thailarul and Indonesia. In order tu prove the
relations, the researcher will use yearly data for GDP, export, import and FD/ from
year 1986-2006 which is from Malaysia Economic Report, Ninth Malaysian Planning
(RMK-9), CIA World Fact Book 2005, IMF WEO Database, ASEAN Trade Database
and Asian Development Outlook. Each data analyzed used Root Test, Cointegration
Test and Granger Causality Test. Final result indicates that relations trade exist
through export, import and FD/ based un effect uf EU enlargement towards ASEAN
economic growth. Indirectly it helps both of the union to create a framework of policy
tu consolidate the relationship tu increase economic growth.
