...JURNAL EKONOMI PEMBANGUNAN “PENGARUH VARIABEL STRUKTUR PERDAGANGAN TERHADAP ARUS PERDAGANGAN BILATERAL NEGARA ANGGOTA ASEAN+5: PENDEKATAN GRAVITY MODEL” Fakultas Ekonomi Universitas Trisakti OLEH Nadya Purnamasari Kaitjily1 DRA. Hj Husna Leila Y., MM2 Abstrak This study examined trade among of ASEAN+5 member countries (year 2002 to 2012). This study aims to determine what factors determine bilateral trade flows between ASEAN+5 member countries by applying Gravity Model through panel data. The results show that GDP, GDP per capita, FDI and Corruption Index have significant affect on trade. In the other hand, Distance has no significant effect in explaining trade among ASEAN+5 member countries. Based on these findings, several important policies implication should be applied in leading ASEAN to develop and to achieve the ASEAN Economic Community in 2015 Keyword: Gravity Model, ASEAN+5 Bilateral Trade, Panel Data 1Mahasiswa Fakultas Ekonomi universitas Trisakti 2Dosen Fakultas Ekonomi universitas Trisakti PENDAHULUAN 1.1 Latar Belakang Negara-negara melakukan perdagangan internasional dikarenakan dua alasan utama yang keduanya bertujuan untuk menghasilkan gains from trade bagi mereka. Pertama, negara-negara melakukan perdagangan dikarenakan mereka berbeda antara satu dengan yang lainnya. Tidak ada negara yang dapat berdiri sendiri tanpa adanya bantuan dari negara lain, karena dengan adanya kerjasama maka suatu negara dapat memperoleh keuntungan dari perbedaan-perbedaan...
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...RICA A brief study on public FDI facilitation by means of trade agreements and trade liberalization Nguyen Phuong Khanh Tung Student ID: 0951040062 ------------------------------ Costa Rica: A brief study on public FDI facilitation by means of trade agreements and future political adjustments. Abstract Being probably the most economically-advanced countries within the region of Central America, Costa Rica is a very interesting example of a how a developing country would manage and regulate its economic growth and stability, much thanks to its unique regime to attract and allocate FDI efficiently. Despite having little natural endowments and regional advantages, Costa Rica has ever since been the economic vanguard among the Latin America community for the last past half decade, with remarkable level of development within knowledge-intensive industries. Furthermore, the country’s early acceptance and adoption of various trade liberalization schemes have created a destination that a number of economists have been referring as ‘investment haven’ for exported products and services. The case of Costa Rica, henceforth, is exemplary for developing countries, not only in regard to attracting pure FDI, but also supervising its spillover effects as a means to stimulate the economy. This paper does not quantify in detail the effects, but rather focuses on a sweeping analysis on Costa Rica’s political historical and possible future approaches in FDI facilitation and administration...
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...China-ASEAN Economic Relations: Development And Future Challenge. Abstract: In recent 15 years, The development of China-ASEAN trade and economic relations has of great significance, not only for both sides but also for the whole East-Asia region. This paper to discuss the latter that is regional implications of 15 years’ development of China-ASEAN trade and economic relations and find the problem and challenge in China-ASEAN trade relations, as well as provide some further consideration for both sides’ trade and economic relations. Introduction Since the economic reforms and open-door policy of1978-79, China's economy has been growing rapidly and more particularly since 1990 when growth has averaged 10% a year. China's external trade has been growing at an even faster rate of 15% a year since 1990, and it has also annually drawing from the lessons of the financial contagion of 1997. Economic links between ASEAN and China through trade, investments and tourism have prospered throughout the 1990s. Perhaps, equally important, China's maintenance of the value of the renminbi (RMB) during the economic crisis of 1997, served as a regional anchor preventing what could possibly have been successive rounds of competitive devaluations. This clearly prevented the crisis from becoming more acute for ASEAN countries and yet this put China’s own exports at risk, as much cheaper goods from the crisis-plagued region competed with Chinese goods. Another important milestone that contributed...
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...Opportunities for India and UAE In Bilateral Investments Soumen Pattanayak Institute of Management Technology, Dubai, United Arab Emirates Soumen.pattanayak08@gmail.com Rahul Hoare Institute of Management Technology, Dubai, United Arab Emirates rahulhoare@gmail.com ACKNOWLEDGEMENT This research paper is made possible through the help and support from everyone, Including: parents, teachers, friends, our institute IMT and in essence, all sentient beings. Especially, please allow us to dedicate our acknowledgment of gratitude toward the following significant advisors and contributors. First and foremost, we would like to thank Dr. Vimi Jham for her support and encouragement. She kindly read our paper and offered invaluable detailed advices on the theme of the paper. Second, we would like to thank our institute, Institute of Management Technology, Dubai for providing us a platform to do the research on Bilateral Investment. Finally, we sincerely thank to our parents, family, and friends for their encouragement. The product of this research paper would not be possible without all of them. About the author Rahul Hoare was born in Kolkata, India (1989). He obtained the B.E degree in Electronics and Telecommunication from University of Pune, India in 2013. Currently pursuing his Masters in Business Administration from Institute of Management Technology Dubai, UAE. Soumen Pattanayak was born in Angul, Orissa, India, in 1986. He received the B.Tech degree...
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............ 3 Chapter 1: Overview of Bilateral Economic Relations ....................................................................... 5 1.1 1.2 1.3 1.4 Overview............................................................................................................................... 5 Trends in Bilateral Trade in Goods ...................................................................................... 7 Trends in Bilateral Trade in Services ................................................................................... 9 Trends in Foreign Direct Investment ................................................................................. 10 Chapter 2: Analysis of the Economic Effects from a Canada-Japan Economic Partnership Agreement .......................................................................................................................................... 12 Chapter 3: Analysis of Major Areas of an Economic Partnership Agreement ................................. 14 3.1 Market Access (including Rules of Origin) ....................................................................... 14 3.1.1 Market Access .................................................................................................................... 14 3.1.2 Rules of Origin including Origin Procedures ..................................................................... 14 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 Trade Facilitation and Customs Procedures...
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...of 2-1-2011 ESSAYS ON INTERNATIONAL TRADE AND FOREIGN DIRECT INVESTMENT Wanasin Sattayanuwat University of Nebraska - Lincoln, wanasin@yahoo.com Follow this and additional works at: http://digitalcommons.unl.edu/businessdiss Part of the Business Commons Sattayanuwat, Wanasin, "ESSAYS ON INTERNATIONAL TRADE AND FOREIGN DIRECT INVESTMENT" (2011). Dissertations and Theses from the College of Business Administration. Paper 18. http://digitalcommons.unl.edu/businessdiss/18 This Article is brought to you for free and open access by the Business Administration, College of at DigitalCommons@University of Nebraska Lincoln. It has been accepted for inclusion in Dissertations and Theses from the College of Business Administration by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. ESSAYS ON INTERNATIONAL TRADE AND FOREIGN DIRECT INVESTMENT by Wanasin Sattayanuwat A DISSERTATION Presented to the faculty of The Graduate College at the University of Nebraska In Partial Fulfillment of Requirements For the Degree of Doctor of Philosophy Major: Economics Under the Supervision of Professor Craig R MacPhee Lincoln, Nebraska February 2011 ESSAYS ON INTERNATIONAL TRADE AND FOREIGN DIRECT INVESTMENT Wanasin Sattayanuwat, Ph.D. University of Nebraska, February 2011 Advisor: Professor Craig R MacPhee This dissertation comprises three separate essays on international trade and foreign direct investment. We present...
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...of the London School of Economics www.ecipe.org info@ecipe.org Rue Belliard 4-6, 1040 Brussels, Belgium Phone +32 (0)2 289 1350 ECIPE OCCASIONAL PAPER ExECuTIvE SuMMARy This is the season for regional-integration initiatives in Asia. There is talk of region-wide FTAs, and there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic gaps and enduring political differences will stymie Asian regional integration for some time to come. As for regional monetary and financial cooperation, it is embryonic, very soft and confined to east Asia...
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...ATPC African Trade Policy Centre Work in Progress No. 77 ATPC Economic Commission for Africa The Impact of Chinese Investment and Trade on Nigeria Economic Growth 2009 Djeri-wake Nabine Abstract This paper examines the impact of Chinese foreign direct investment and bilateral trade with Nigeria economic growth. The study use an augmented aggregate production function (APF) growth model, three methods are performed to test the hypothesis that there is no causal relationship between foreign direct investment, exports, imports and economic growth. The statistical methods used are: the Ordinary Least Squares Method (OLS) and the Granger causality test. Using time-series and panel data from 1990 to 2007, The estimated both short and long-run analysis for Nigeria-China relationship shows that in short term the bilateral trade doesn’t contribute to Nigeria economic growth but the long term relationship can enhance Nigeria economic growth; it should then be the policy priority for Nigeria to make sure that FDI inflows from China and its trade relationship with China exert the reinforcing and beneficial effects on GDP and exports through active acquisition of advanced technology and open trade regime. A - CEA EC E ATPC is a project of the Economic Commission for Africa with financial support of the Canadian International Development Agency (CIDA) Material from this publication may be freely quoted or reprinted. Acknowledgement is requested...
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...direct investment (FDI) is a potent weapon of developing the Bangladesh economy and can play an important role in achieving the country’s socio-economic objectives including poverty reduction goals. In a capital-poor country like Bangladesh, FDI can emerge as a significant vehicle to build up physical capital, create employment opportunities, develop productive capacity, enhance skills of local labor through transfer of technology and managerial know-how, and help integrate the domestic economy with the global economy. This policy note provides an assessment of the current situation of FDI in Bangladesh and examines its impact on the country’s balance of payments. Foreign Direct Investment (FDI) is capital provided by a foreign direct investor, either directly or through other related enterprises, where the foreign investor is directly involved in the management of the enterprise. Until the1980s, most developing countries viewed FDI with great weariness. In recent years, however FDI restrictions have been significantly reduced. Most countries offer incentives to attract FDI, such as tax concessions, tax holidays, accelerated depreciation on plants and machinery, export subsidies and import entitlements etc. As a developing country, Bangladesh needs FDI for its ongoing development process. Since independence, Bangladesh is trying to be a suitable location for FDI. Special zones have been set up and lucrative incentive packages have been provided to attract FDI. However, the total...
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...learning culture and is an important value creation strategy. Several factors are responsible for fuelling the growth of cross border mergers. Few among them are industry consolidation phenomenon, privatization and liberalization of the economies. The volume of cross border mergers has increased over the period from 23% of total merger volume in 1998 to 45% in 2007. Cross border mergers provide another dimension to domestic mergers because of cultural or geographic differences, government related differences, imperfect integration of the capital markets, changes in exchange rate and stock market valuations in local currency. A parallel literature to that on cross-border mergers concerns FDI. In this paper, we focus our empirical work on mergers and acquisitions rather than all FDI due to data quality. FDI contains components other than investment such as inter-company loans and retained earnings. As per the journal, the merger sample includes deals announced between the period 1998 and 2007. The total sample was of 187,841 mergers covering 48 countries. Out of this, 56,978 were cross border mergers with a total transaction value of $2.21 trillion and majority involved private firms outside of the United States. The results showed that univariate comparisons of pre-mergers performance outperform targets by all measures. Mergers generally occur when the managers of an acquiring firm perceive that the value of the combined firm is greater than the sum of the values of the separate...
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...economic engagement, which underpins the warm ties between the two states, has put South Africa amongst China’s top three trading partners on the continent. Moreover, China is an emerging market economy; with a fast track of being the next economic rising superpower in the world and its current relations between it and Africa continue to grow fast with foreign direct investment increasing thirty-fold between 2003 and 2011, from US$491m to US$14.7 billion. In 2012, China pledged US$20 billion of loans to Africa over three years for infrastructure, agriculture and manufacturing. If the funds are stay the way they are and do not decline, China will become Africa’s principal financial backer. China is already Africa’s leading bilateral trade partner. Two-way trade grew from US$10.6 billion in 2000 to US$166 billion in 2011. South Africa is a country with more than 50 million people of different racial...
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...Discuss how and why China’s relations with the world economy change after 1993? The economic reforms of China, called “open doors policy” starting in 1978 with Deng Xiaoping –the leader of the Communist Party of China (CPC) - marked the beginning of a new era where China initiated to open its economy to the world. (Nolan, 2005) In 1992, during his Southern tour, Deng Xiaoping introduced the term of “Socialist Market economy” to describe Chinese economy and in 1993 the term was added to the Constitution, which means that socialism was still the basis of the economical system but that the State also protected the market economy from now on and therefore was ready to go international. This essay will discuss to which extent 1993 was the changing year for China’s international economic relations. Naughton (2007) refers to the 1990s reform in China as a “reform with losers” meaning that at this point, Chinese economy was moving towards a transformation to capitalism. They started to strengthen the institutions of market economy and began to privatize the State sector. The State-owned Enterprises (SOE) reform - specifically the “grasping the big, letting go of the small” strategy - was aimed to improve the efficiency and corporate governance of the State companies by keeping the key resources (such as infrastructure construction, telecommunications, financial services, energy and raw materials) (GENG, X., YANG, X. and JANUS, A. 2009) and the big companies and let go the...
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...Malaysia’s economic sphere of influence has been constantly growing on the world market and has attracted a lot of attention in the past years as a rapidly developing country in a very dynamic region. This can be shown with the amount of Foreign Direct Investments (FDI) Malaysia receives and has received throughout the years even within a context of a worldwide recession and a global economic crisis. Firstly, I will explain more in detail what an FDI is, the trend it has been following in Malaysia and the way it has been growing on the time span of 1990 to 2010. Secondly, I will mention the rate of growth in Malaysia’s economy by analyzing its Gross Domestic Product and its economic growth in general and finally I will try to find a link between this trend that FDIs are following in Malaysia and how the Malaysian society is evolving in terms of transfer of technology, employment, income distribution and poverty and environment. A Foreign Direct Investment is an “overseas equity investment by a private multinational corporations” according to Todaro and Smith’s Economic development. Almost every country in the world has been known to emit FDIs as well as receive them. Malaysia is no different, especially being in such a dynamic region, Southeast Asia , it has attracted a lot of foreign businesses and continues to attract them as we will show later on in the paper. The reason Malaysia attracts foreign firms is not...
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...in all areas of social existence. Along with a tolerant democracy, the aspiration is for a more caring society based on a system of values rooted in the culture and traditions of Bangladesh. The country’s value system will develop as it progresses, and the values will translate from collective to individual perspectives creating a collective drive to work together towards national development. Bangladesh’s heritage, rich in content and diversity, shall have a place in our present and be the anchor for the country’s ambitions. Globalization in the broadest sense implies integration of economies and societies across the globe through the flow of technology, trade and capital. Economic globalization is a process of rapid economic integration between countries that is driven by the increasing liberalization of international trade and foreign direct investment. Liberalization of the economy in Bangladesh seemed an inevitable measure to meet the economic challenges of globalization. Whether it has derived benefits for the country or not remains a point to be analyzed. Some argue that the country has opened up to the world economy too fast and suffered in consequence, while some wrangle that a low technological base and poor governance is...
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...Introduction This essay will explore the nature of NAFTA and its effect on regional integration as well as state economies from several perspectives. In 1993, the United States, Canada and Mexico signed the North American Free Trade Agreement to achieve the higher level of regional integration. This NAFTA not only concerns the removal of trade barriers, but also aims to promote the movement of capital. Firstly, this essay will explain the evolution of NAFTA and its successful influence on economic integration. Furthermore, this chapter will provide the criticism on the influence of NAFTA. Secondly, this study will discuss the impact of NAFTA on regional integration, particularly economic integration. Then, this essay will propose the understandings on the effect of NAFTA on members’ economies and businesses from four perspectives, including trade, economic growth, employment and FDI. Main body The Evolution of NAFTA The North American Free Trade Agreement (NAFTA) issued in 1993 aims to removal trade barriers and liberalise economics and business among the United States, Canada and Mexico. Compared with similar FTA economic relationship, such as EU, NAFTA is described as the most implemented FTA (Orme, 1996). Like most FTAs, NAFTA not only effectively coordinates resource and improves competitiveness of countries and corporates, but also promotes the movement of products, services and investment, even financial integration. For instance, Krugman & Hanson (1993) stress that...
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