A successful economic integration is meant to assist the backward member states to catch-up with the more advanced members in terms of development. As a result, the backward member states have their economy shifted from an agriculture-dominant economy towards industrial (with higher labour productivity) and then the service-dominant economy in order to maintain sustainability. With the catching-up in terms of the dominance of production, their economic structure shall become more similar with the more advanced members over time and hence experiencing structural convergence. Therefore, income convergence is expected when these backward member states have their income per capita increased alongside with the structural convergence. Evidences of income convergence within ASEAN are lacking and not much of the studies focused on the convergence in terms of the development stages within ASEAN. Since the dominance of production is always being used to refer to stage of development, therefore this paper would like to investigate on the production structure among ASEAN member states using the Krugman Index. Our results revealed an increasing structural convergence within ASEAN. The newer members of ASEAN namely Cambodia, Laos, Myanmar and Viet Nam (i.e., CLMV) had been catchingup with the more advanced members in their development. Though, the mining and utilities sector turned to be the sector that impedes further structural convergence for all. On the other hand, big share of agriculture sector among the CLMV countries become their main factor to slow down the structural convergence.

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Objective - The formation of the Trans-Pacific Partnership (TPP) without the United States has raised many concerns in terms of the possibility of its success. The economic growth of the remaining 11 partner countries is important for the success of the formation of the TPP. Although economic performance depends on certain crucial indicators including debt, the effect of debt on the economic performance among the TPP partner countries remains ambiguous. Methodology/Technique - As a result, this study investigates the nonlinear effect of debt on the economic performance of these partner countries (excluding Brunei and Vietnam) as a whole. In addition, the optimal level of debt is proposed as a means to control the level of debt for sustainable economic growth. Unbalanced panel data of the annual public debt-to-Gross Domestic Product ratio (measured as a percentage of GDP) and real GDP per capita from 1984 to 2015 was collected. Through panel analysis, this study reports an inverted U-shaped relationship between debt and economic performance. Findings - The threshold debt level was identified at 58.02% of GDP. This non-linear relationship means that increasing debt has a positive impact on economic performance before reaching 58.02% of GDP, and an inverse impact on economic performance occurs after this threshold debt level. However, the average debt reveals that the partnership as a whole experiences the reverse effect of debt on growth during this period. Novelty – This study highlights the need for prudent indebtedness policies to ensure continuing trade integration. Type of Paper - Empirical. Keywords: Debt; Growth; Nonlinear; Threshold; TPP Countries. JEL Classification: G10, G11, G19.