Download or read book The Effects of East Asian Free Trade Agreements on Foreign Direct Investment written by Qiaomin Li and published by . This book was released on 2015 with total page 165 pages. Available in PDF, EPUB and Kindle. Book excerpt: The proliferation of Free Trade Agreements (FTAs) in East Asia has triggered extensive studies about the economic effects of FTAs. With trade and welfare effects as the focuses of many studies, the Foreign Direct Investment (FDI) effect has attracted relatively less attention. Given that attracting FDI is a common goal of FTAs, it is important to fill this gap. This thesis fills the gap by assessing the FDI effects of ASEAN-China Free Trade Agreement (ACFTA) through econometric models and by simulating the FDI effect of Regional Comprehensive Economic Partnership (RCEP) through a Computable General Equilibrium (CGE) model. I summarized three effects of Free Trade Agreements (FTAs) on FDI from the literature regarding theoretical links between trade liberalization and FDI. First is the vertical fragmentation effect. Reduction in trade costs of intermediate goods increases the incentive for multinationals to split production processes into different countries to take advantage of favorable conditions in each. Thus, vertical FDI would increase after FTA. Second is the market expansion effect. The preferential access to partner countries expands the domestic market to partners', increasing the attractiveness of member countries to marketseeking FDI. Third is the plant rationalization effect. Reduction in trade costs encourages firms to choose trade rather than FDI to supply partners' markets. Thus, trade substitution may decrease FDI. ACFTA is the first important free trade agreement for China and a significant development in East Asian integration. The study of ACFTA has two steps. First, I adopted an econometric model to examine the overall FDI effect of ACFTA. The model is based on the knowledge-capital theory of FDI and captures third country effects, which enables it to explain not only horizontal and vertical FDI, but also complex FDI such as export platform and complex vertical FDI. The model has been found to suit FDI study in East Asia. ACFTA shows a positive and significant FDI-promoting impact, indicating that the market expansion and vertical fragmentation effects dominate the FDI-decreasing effect of plant rationalization. I then conducted a more detailed study about ACFTA, aiming to explore the mechanism of how the agreement positively affected FDI. The target of this study is to detect the two FDI-promoting effects (the market expansion and vertical fragmentation effects) of ACFTA. This is the first time to examine these individual effects of an FTA and there is no existing methodology. Innovatively, I adopted an FDI industry model to test different effects of ACFTA on various industry sectors. The approach is adopted based on the two effects' definitions. The definition of vertical fragmentation effect suggests that it would mainly affect pro-fragmentation sectors, while the definition of market expansion effect indicates that it would mainly affect export-increasing sectors. The FDI effects of ACFTA on these sectors reflect the two corresponding effects. These sectors are identified through analyses of total trade, and trade in intermediate goods. The FDI industry model shows that both the market expansion and vertical fragmentation effects exist in ACFTA, with the latter a little stronger on China. The effects of ACFTA mainly come from trade liberalization in goods but not services. Given the big share of services in FDI, it is important to include services liberalization in assessing the effects of FTAs on FDI. With this target, I developed a CGE model to simulate the potential effect of RCEP, which is expected to include liberalization of services trade. The CGE model utilizes the firm heterogeneity framework in analyzing FDI effects. The model incorporates FDI by sourcing capital to home region and differentiating firms by ownership. Given the importance of services to FDI, the model carefully deals with services barriers. Based on empirical evidence, the services barriers are modeled as tax equivalents that raise costs to imports and generate rents to incumbent firms. Simulation results show that RCEP can promote FDI to China, and services dominate the FDI increase. Specifically, comprehensive liberalization on trade in goods and services with a more than 50% reduction in services barriers in China can promote FDI flow to China by US$2.8 billion and increase its welfare by US96 billion. If RCEP can help member countries to improve their business environments so as to reduce fixed trading costs, the gains of China in FDI and welfare would be even bigger. In summary, this thesis examines the FDI effects of ACFTA through econometric studies and experiments with RCEP through a CGE model. Both ACFTA and RCEP are found to promote FDI to member countries. While the econometric finding of ACFTA suggests a significant FDI effect of goods trade liberalization, the CGE simulation results of RCEP show that the effect of services liberalization is much stronger.
Download or read book Free Trade Agreements in the Asia Pacific written by Christopher Charles Findlay and published by World Scientific. This book was released on 2010 with total page 332 pages. Available in PDF, EPUB and Kindle. Book excerpt: Free Trade Agreements (FTAs) have proliferated in East Asia as regional economies rush to catch up with the rest of the world OCo but what difference do they make? This book answers that question by providing an up-to-date assessment of the quality and impact of FTAs in the region. Featuring a collection of papers originally written for the prestigious Research Institute for Economy, Trade and Industry (RIETI) in Tokyo, it presents contemporary analysis and insights into the evolution of recent FTAs. The book is suitable for use by trade policy negotiators, policy analysts, and people developing business strategies in organizations, as well as graduate students and researchers in the field. Sample Chapter(s). Chapter 1: Rules of Origin and Agricultural Trade Liberalisation in Major Free Trade Agreements (249 KB). Contents: Rules of Origin and Agricultural Trade Liberalisation in Major Free Trade Agreements (I Cheong & J Cho); Services in Free Trade Agreements (R Ochiai et al.); Analysis of the Restrictions on Foreign Direct Investment in Free Trade Agreements (S Urata & J Sasuya); A Comparison of the Safeguard Mechanisms of Free Trade Agreements (A Kotera & T Kitamura); Assessing the Economic Impacts of Free Trade Agreements: A Computable Equilibrium Model Approach (K Abe); The Impacts of Free Trade Agreements on Trade Flows: An Application of the Gravity Model Approach (S Urata & M Okabe); On the Use of Free Trade Agreements by Japanese Firms (K Takahashi & S Urata); Impacts of Japanese FTAs/EPAs: Preliminary Post Evaluation (M Ando). Readership: Graduate students and researchers in international trade; trade policy negotiators; policy analysts; business strategy developers."
Download or read book US Foreign Direct Investment in East Asia written by Mahani ZAINAL ABIDIN and published by . This book was released on 2009 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: East Asian trade and investment policies have attracted US investment into the region, but these policies should be fine-tuned for the region to compete effectively for US investment inflow and increase their global share of US foreign direct investment. The changes should consider the needs of the US investors and East Asia's own economic development. Bilateral free trade agreements with the US are the likely channel for these changes, but the question is whether East Asia is ready for a comprehensive and deep liberalization. East Asia should work toward a regional investment policy framework to facilitate and expand the regional production network developed by the US foreign direct investment.
Download or read book Asian Trade and Investment in Europe written by Prana Krishna Biswas and published by Routledge. This book was released on 2022-04-29 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides deep insight into the flow of foreign direct investment from Asia to Europe. It assesses the topic of trade and investment from the reverse direction, considering Asian countries as the capital investors in the EU countries. Each chapter analyses either the international trade or investment of one or more Asian countries in correlation with one or more European states. The book analyses a significant number of countries, which are included in various economic associations, such as the Visegrad Group, the Three Seas Initiative, the European Free Trade Association, or are states from the same geopolitical region – for instance, the Iberian Peninsula, Baltic States, and Nordic countries. It examines Indian outward foreign direct investment trends in the UK before and after Brexit, based on select case studies, to emphasize the impact of Brexit, as well as to encourage trade and investment among Asian and European countries before and during COVID-19, to highlight the influence of the pandemic on the target country’s economy. The authors use a variety of analytical methods in the book, such as numerical presentations, econometric analysis, descriptive statistical analysis, an examination of time-series dynamics, the modelling of functions, and semi-structured interviews with company executives. The regional perspectives bring new and useful insights to the topic, and the case study approach allows for a wider exploration of the research questions as well as their theoretical evolution. The book provides a "big picture" for economists, researchers, business analysts, and PhD students of economics, international trade, and business.
Download or read book The Role of Foreign Direct Investment in East Asian Economic Development written by Takatoshi Ito and published by University of Chicago Press. This book was released on 2007-12-01 with total page 396 pages. Available in PDF, EPUB and Kindle. Book excerpt: The international flow of long-term private capital has increased dramatically in the 1990s. In fact, many policymakers now consider private foreign capital to be an essential resource for the acceleration of economic growth. This volume focuses attention on the microeconomic determinants and effects of foreign direct investment (FDI) in the East Asian region, allowing researchers to explore the overall structure of FDI, to offer case studies of individual countries, and to consider their insights, both general and particular, within the context of current economic theory.
Download or read book Beyond Trade written by Denis Medvedev and published by World Bank Publications. This book was released on 2006 with total page 66 pages. Available in PDF, EPUB and Kindle. Book excerpt: Abstract: The author investigates the effects of preferential trade agreements (PTAs) on the net foreign direct investment (FDI) inflows of member countries using a comprehensive database of PTAs in a panel setting. He finds that PTA membership is associated with a positive change in net FDI inflows, and the FDI gains are increasing in the market size of the PTA partners and their proximity to the host country. The author identifies several different channels through which preferential trade liberalization may affect FDI, and confirms that both threshold effects (signing the agreement) and market size effects (joining a larger and faster-growing common market) are important determinants of net FDI inflows, although the latter seem to dominate. The estimated relationship is largely driven by North-South PTAs, and is most pronounced in the late 1990s and early 2000s, the period when the majority of "deep integration" PTAs had been advanced.
Download or read book Methodology for Impact Assessment of Free Trade Agreements written by Michael G. Plummer and published by Asian Development Bank. This book was released on 2011-02-01 with total page 194 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication displays the menu for choice of available methods to evaluate the impact of Free Trade Agreements (FTAs). It caters mainly to policy makers from developing countries and aims to equip them with some economic knowledge and techniques that will enable them to conduct their own economic evaluation studies on existing or future FTAs, or to critically re-examine the results of impact assessment studies conducted by others, at the very least.
Download or read book Asia s Free Trade Agreements written by Masahiro Kawai and published by Edward Elgar Publishing. This book was released on 2011 with total page 305 pages. Available in PDF, EPUB and Kindle. Book excerpt: East Asia is the region of the world that is changing fastest in terms of trade arrangements. Dozens of free-trade agreements are signed every year, turning a complex situation into the East Asian noodle bowl of FTAs. This book addresses the crucial question posed by these new agreements how do they affect business? While many studies have focused on government-to-government issues, this book gets to the heart of the matter, studying what it means for the firms actually doing the trade and investment. I recommend this book to any serious student of trade, particularly those interested in understanding the rapidly evolving landscape in this most dynamic part of the world. Richard Baldwin, Professor of International Economics, Graduate Institute, Geneva, Switzerland The pursuit of more than one hundred Free Trade Agreements in East Asia is quietly producing a fundamental change in the global economic architecture. This path-breaking new volume provides an indispensable guide to the practical effect of such agreements on commercial transactions in the region. It is a must-read for businessmen and policymakers who seek to both understand the impact of FTAs in the real world and expand their contributions to economic growth and development. C. Fred Bergsten, Director, Peterson Institute for International Economics, US [East Asia] needs to think about appropriate measures to overcome the Asian FTA noodle bowl in the future. In this vein, the study suggests several practical measures including encouraging rationalization and flexibility of rules of origin, upgrading origin administration, improving business participation in FTA consultations, and strengthening institutional support systems for SMEs. . . It is hoped that this study will contribute to strengthening regional trade policies in Asia and compatibilities with global trade rules. Haruhiko Kuroda, President, Asian Development Bank This is a valuable contribution in a crowded field. Kawai and Wignaraja have gone beyond familiar arguments about the relative merits of regionalism and multilateralism to ask businesses what it all means to them. Policymakers should take note. Patrick Low, Chief Economist, WTO For policymakers in the region, the debate is no longer between regionalism and multilateralism. The real question is how we should create the model for regionalism that will become the building blocks to a multilateral trading system and avoid raising costs of doing business from the noodle bowl effect. Therefore the comparative and micro-level research found in this book provides valuable insights on the impact of FTAs on businesses. These insights will be relevant input as policymakers forge ahead in implementing regional FTAs, thinking of ways to amend and improve on them and, most importantly, harmonize or consolidate between existing regional FTAs in East Asia. Mari Pangestu, Minister of Trade, Indonesia The spread of Asia s free trade agreements (FTAs) has sparked an important debate on the impact of such agreements on business activity. This pioneering study uses new evidence from surveys of East Asian exporters including Japan, the People s Republic of China, the Republic of Korea and three ASEAN economies of the Philippines, Singapore and Thailand to shed light on the FTA debate. Critics are concerned that FTAs erode the multilateral trading process and foster an alarming noodle bowl of overlapping regulations and rules of origin requirements which may be costly to business. Asia s Free Trade Agreements makes key recommendations for improving business use of FTA preferences, reducing costs of FTAs and creating a region-wide FTA. This well-researched and documented book will appeal to undergraduate and postgraduate students in international business, international economics, economic development, public administration and public policy. Academics, researchers and members of think-tanks around the world will also benefit from this book as will trad
Download or read book Foreign Direct Investment Dynamics in South East Asian Countries written by Tony Irawan and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Asean Economic Integration Trade Foreign Direct Investment And Finance written by Michael G Plummer and published by World Scientific. This book was released on 2009-07-17 with total page 354 pages. Available in PDF, EPUB and Kindle. Book excerpt: Given the rapid emergence of regional economic arrangements in Asia, especially in Southeast Asia, it is useful to understand clearly what regionalism implies for the region, as well as to take stock as to the far-reaching and complicated effects of formal economic cooperation and integration. This book allows the reader to better understand the relevant international policies of the Southeast Asian economies, and to appreciate the potential lessons for other developing regions. It also focuses on the regionalism trend with an explicit application to ASEAN, as well as the implications of regionalism in the developed countries.The goal of this book is to survey the economics and political economy of regionalism in the ASEAN context from a variety of perspectives and using various techniques, from standard economic analysis of preferential trading arrangements to the political economy analysis of institutions. Its approach is comprehensive in that it includes ASEAN economic integration in the areas of trade, foreign direct investment, and finance. Presentation of the material is designed to be accessible to non-technical audiences without sacrificing the rigor expected by economists and other experts.
Download or read book Corporate Links And Foreign Direct Investment In Asia And The Pacific written by Eduard K.y. Chen and published by Routledge. This book was released on 2018-03-05 with total page 335 pages. Available in PDF, EPUB and Kindle. Book excerpt: A major force in East Asia's remarkable economic growth and industrial transformation, foreign direct investment has been growing at 14?15 percent annually in Southeast Asia and China over the last decade. This timely volume examines the impact of investment on trade in the region, focusing especially on microeconomic issues of strategy, activity, and behavior of corporate investors. The contributors explore the role of corporate alliances and networks of Japanese and Chinese firms, as well as the influence of investors from newly industrializing economies, in the relocation of production and trade within the region.
Download or read book Static and Dynamic Consequences of a South Korea U S Free Trade Agreement written by and published by . This book was released on 2007 with total page 156 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Multinationals and Economic Growth in East Asia written by Shujiro Urata and published by Routledge. This book was released on 2006-11-22 with total page 513 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a comprehensive examination of the role of foreign direct investment in East Asia before and after the financial crisis of mid-1997.
Download or read book How to Design Negotiate and Implement a Free Trade Agreement in Asia written by Asian Development Bank. Office of Regional Economic Integration and published by . This book was released on 2008 with total page 168 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Future of the ASEAN Economic Integration written by Kiki Verico and published by Springer. This book was released on 2016-11-23 with total page 302 pages. Available in PDF, EPUB and Kindle. Book excerpt: Verico discusses the ASEAN economic integration from dual perspectives of time span (trade, investment and finance) and framework (bilateral, sub-regional, regional and regional plus). The work is a comprehensive study of the integration in the wake of the ASEAN Economic Community (AEC)’s inauguration in late 2015. Examining various economic agreement levels from the ASEAN Free Trade Area (AFTA), Bilateral Free Trade Agreement (BFTA) and the AEC to financial integration in ASEAN, Verico attempts to envisage the future of ASEAN in completing its regional economic integration from trade to investment and finance. Verico argues that, in the absence of a customs union, ASEAN must utilize the open-regionalism frameworks of the ASEAN Plus One, ASEAN Plus Three, Regional Comprehensive Economic Partnership and others in order to shift its economic integration level in this way.
Download or read book Implications of the North American Free Trade Agreement for the Asian and Pacific Region written by United Nations. Economic and Social Commission for Asia and the Pacific and published by . This book was released on 1995 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Competitiveness of the ASEAN Countries written by Philippe Gugler and published by Edward Elgar Publishing. This book was released on 2010-01-01 with total page 337 pages. Available in PDF, EPUB and Kindle. Book excerpt: In an age in which it is increasingly necessary for nations to consider their competitiveness and at a time when the world economy is facing recession, this book explores the possible trajectory of ASEAN arguably one of the most dynamic areas in the world as a regional economic and political bloc. This important and timely study focuses on the role of foreign direct investment in advancing the performance of ASEAN and the competitiveness of its firms, whereas other studies typically focus solely on the role of trade. The expert contributors an interdisciplinary assembly of economists, lawyers and political scientists present a comprehensive view of ASEAN s experiences over the past decade, addressing the industrial competitiveness of ASEAN and analysing the role of MNEs against the background of the challenges of integration. They illustrate that regional integration will only be a success if ASEAN s linkages are broadened with global partners through negotiations of Free Trade Agreements. The book concludes that although much still remains to be done, and many promises are still to be unveiled, ASEAN s coming of age is an historic milestone. Competitiveness of the ASEAN Countries will appeal to a broad readership including students, academics and researchers with an interest in Asian studies, international business, international economics and international law.
