Welfare Gains from Regional Economic Integration in Asia : ASEAN+3 or EAS

The experiences of Asian countries suggest that the region has substantial economic potentials and synergies between these countries and they can be better tapped with comprehensive economic cooperation. With this approach formation of an Asian Economic Community is not too far away from now. Next phase of liberalisation in Asia should focus on deep economic integration. Sitting on the driving seat, ASEANs economic interest should be given priority while taking a view on further regional economic liberalisation in Asia. The core issue is , which group of countries between ASEAN+3 and East Asian Summit (EAS) countries, would elicit maximum benefit to the region in general and ASEAN in particular? Using an Applied General Equilibrium (AGE) model in a monopolistic framework, the paper suggests that next Round of economic liberalisation should start with EAS.