2. Literature review
Lloyd and Smith’s (2004) study on trade facilitation in ASEAN notes that the creation of
a single market implies that the law of one price holds in all markets. To obtain the goal
of economic integration (i.e. a single market), Lloyd and Smith (2004) have identified
three sets of measures, namely:
(1) border measures applying to imports into a member country;
(2) beyond-the-border measures applying to imports into a member country; and
(3) harmonization of measures across member countries.