Asian Trade Research Articles

Correction: The regime complex for digital trade in Asia and China’s engagement

Correction: The regime complex for digital trade in Asia and China’s engagement

ADAM SMITH ON THE “WRETCHED SPIRIT OF MONOPOLY” IN THE EAST INDIES TRADE

According to Adam Smith, the “wretched spirit of monopoly” dogged the East Indies trade. The regulations that governed the East Indies trade established legal barriers or restrictions to entry and sustained a mercantile community whose interests were “the opposite to that of the great body of the people” (WN IV, ch. iii, p. 494). The East Indies charter conferred a special privilege that shielded the English East India Company from all domestic competition in Asian trade. The East India Company was the complete incarnation of a mercantile system against which Smith had determined to launch “a very violent attack” in Wealth of Nations (Smith 1987, p. 251). Smith’s mistrust of trading bodies like the East India Company was compounded by its having assumed political powers commensurate with the sovereign while still in possession of its monopolistic franchise. Smith’s proposal was, first, to abolish the monopolistic franchise to rid society of “the unfortunate effects of all the regulations of the mercantile system” (WN IV, ch. vii, p. 606), and, second, to reform the East India Company’s administrative duties and functions in the Indian territories. The contention of this paper is that Smith’s call to abolish the East Indies monopoly was inseparable from his appeal for reform of the English East India Company.

Mapping trade opportunities in Central and South Asia: an exploration through trade indices and metrics

Purpose This study aims to explore the possibilities for regional (intra and inter) trade between Central Asia and South Asia (CASA) by examining several frameworks that impact the economic integration of these regions. Design/methodology/approach The study uses five indices, specifically the export diversification index, export survival rates, export sophistication, revealed comparative advantage and intra-industry trade index in South and Central Asia, from 2005 to 2021. Findings The findings show a twofold increase in the potential trade value between the two regions compared to the actual level. The intra-regional trade in Central Asia accounts for less than 5% of trade with all countries, whereas the intra-regional trade in South Asia accounts for 1.5%, and the inter-regional trade accounts for between 0.2 and 4% of total trade to all destinations. The intensity of trade measurements shows that inter-regional trade flows are modest because they make up a relatively small percentage of the entire trade volume, which includes all destinations, ranging from 0.2 to 4 %. Research limitations/implications These findings have a significant impact on the successful implementation of trading-related measures, initiatives and institutional mechanisms for encouraging improved trade between and within both regions. Practical implications Export diversification initiatives aim to provide favourable outcomes for all parties involved, focusing on expanding the range of goods and services exchanged. CASA countries with higher diversification have shown more favourable outcomes than those relying on a restricted range of products. The authors expect policies promoting a broader array of exports to boost market shares, while maintaining a narrow focus may hinder new export prospects. In addition, regional value chains and policy initiatives promoting trade and investment could lead to increased value additions to exports, technological transfers and job creation. Social implications The study emphasises the significance of trade-related policies, programmes and institutional mechanisms in promoting trade between CASA. It emphasises the need for policies that support investment and trade, adopt new requirements of the Agreement on Trade Facilitation and promote diversity and latency. Originality/value Based on economic analysis, the study offers practical insights and strategies for businesses in the CASA regions. It also provides analytical tools for academics and decision makers, as well as policy and programme recommendations for government agencies, development partners, researchers and individuals interested in trade dynamics in these regions.

The regime complex for digital trade in Asia and China’s engagement

AbstractThe rapid development of information and communication technologies over the past two decades has resulted in profound transformations in traditional economic and trade activities, leading to the scaling of digital trade across the Asian region and beyond. Drawing on the conceptual framework of the regime complex, this article seeks to delineate the main features of regional digital trade governance in the Asian region and China’s engagement with the regime-building process in this policy field. It demonstrates that the digital trade governance landscape in Asian countries comprises a collection of partially overlapping and nonhierarchical regimes, where different regional actors are formulating competing visions and approaches to digital trade governance. In addition, the dynamic nature of the digital trade regime complex in Asia and China’s evolving approach to digital trade governance is mutually constitutive. By selectively liberalizing in certain contexts while remaining conservative in others, China contributes to a more complex and less cohesive regional digital trade environment. China’s emphasis on standard-setting efforts and security considerations introduces additional complexities to the regime complex, potentially impeding the development of comprehensive governance regimes for digital trade in the region.

QUY ĐỊNH TỰ DO HÓA DỊCH VỤ PHỤ TRỢ VẬN TẢI HÀNG KHÔNG CỦA HIỆP ĐỊNH THƯƠNG MẠI DỊCH VỤ ASEAN:NHỮNG VẤN ĐỀ ĐẶT RA ĐỐI VỚI VIỆT NAM

The article analyzes ASEAN Trade in Services Agreement (ATISA) commitments on air transport ancillary services and finds that these commitments in ATISA are presented at a “deeper” and “wider” level compared to commitments of the World Trade Organization (WTO) and trade agreements of which Vietnam is a member. Additionally, based on these analyses and evaluations, the article raises issues relevant to Vietnam to leverage opportunities presented by ATISA.

International trade and economic growth in ASEAN

Purpose – This study aims to analyze the effects of international trade represented by imports and exports in the ASEAN region. Methods – This study uses import, export, labor, and FDI variables on GDP in 8 countries in ASEAN for the period 2000 – 2022 using a panel data regression approach. Findings – The results of this study are that international trade has an impact on economic growth. The results specifically show that the negative effects of imports and positive exports contribute to GDP and labor has a positive effect on GDP. Implication – This study recommends a clear international trade policy between countries, namely by simplifying trade restrictions and conditions between countries. Originality – This study contributes to empirical studies of international trade, especially for cases in ASEAN. Abstrak Tujuan – Penelitian ini bertujuan untuk menganalisis efek dari perdagangan internasional yang direpresentasikan oleh impor dan ekspor di wilayah ASEAN. Metode – Penelitian ini menggunakan variabel impor, ekspor, labor, dan FDI terhadap GDP pada 8 negara di ASEAN untuk periode 2000 – 2022 menggunakan pendekatan regresi data panel. Temuan – Hasil dari penelitian ini adalah bahwa international trade memili dampak terhadap pertumbuhan ekonomi. Hasil secara spesifik menunjukkan bahwa efek negatif impor dan positif ekspor berkontribusi terhadap GDP serta labor berpengaruh positif terhadap GDP. Implikasi – Penelitian ini merekomendasikan adanya kebijakan perdagangan internasional yang jelas antar negara yaitu dengan mempermudah batasan dan syarat perdagangan antar negara. Orisinalitas – Penelitian ini berkontribusi pada kajian empiris perdagangan internasional khususnya untuk kasus di ASEAN.

Trade, FDI and Emissions in South Asia: Role of Global and Regional Linkages

Trade, FDI and Emissions in South Asia: Role of Global and Regional Linkages

Analisis Peluang dan Ancaman Perdagangan Bahan Pangan serta Kebijakan untuk Mengatasinya: Studi Kasus Indonesia dan Thailand

This research examines the potential for Indonesian agricultural exports to Thailand in the context of ASEAN trade. The analysis focuses on the comparative advantages of the two countries in key agricultural commodities such as rice, corn, sugar, palm oil and coffee. Production and export data for 2022 shows that Indonesia is ahead in palm oil and coffee production, while Thailand is dominant in rice and sugar exports. The 2021-2023 trade balance of both countries shows a deficit, with Thailand experiencing a much larger deficit. Despite facing challenges such as price fluctuations, climate and trade regulations, Indonesia has the opportunity to increase its agricultural exports to Thailand by improving production efficiency and product quality.

An Investigation on the Effectiveness and Trade Direction of ASEAN Trade Agreements

This study aims to evaluate the effectiveness of the ASEAN regional trade agreement by comparing the growth rates of intra-ASEAN trade with those of the rest of the world as well as with major trading countries, China, the USA, the EU, and India. The objective of this research is threefold: To identify existing trade trends, to determine the underlying explanations for these trends, and finally, to compare intra-ASEAN trade trends with the inter-ASEAN countries’ trade trends. This paper takes a descriptive approach and dynamic panel GMM methods spanning the years 1990 to 2019. Between 2005 and 2019, growth rates among members of intra-ASEAN, Indonesia-Malaysia, Indonesia-Thailand, Singapore-Thailand, Malaysia-Philippines, and Philippines-Thailand, all decreased. Additionally, although the market share of imports and exports within ASEAN has decreased over time, the market share of imports and exports of inter-ASEAN has increased, especially with China and India. The results of descriptive analysis of inter-ASEAN trade openness are supported by first-differenced GMM and system GMM. This is the first study to examine historical intra-ASEAN trade trends and growth and compare them to inter-ASEAN trade trends and growth to determine whether AFTA has a greater impact on intra-ASEAN trade growth than on inter-ASEAN trade growth using updated aggregated data. This study sheds light on the fact that over the periods intra-ASEAN trade could not outperform inter-ASEAN trade by a significant margin due to trade diversity challenges and incomplete implementation of WTO regulations.

From curse to blessing: a fourier-augmented ARDL analysis of agriculture, geopolitics, and trade in south and central Asia

From curse to blessing: a fourier-augmented ARDL analysis of agriculture, geopolitics, and trade in south and central Asia

A composite indicator-based method to assess the energy security of Nepal and prospects of cross-border electricity sharing in South Asia

Scholars recommend country (or region) specific energy security indices capable of adequately considering local specificities in the absence of a ‘universal’ index. Such an index is not available for Nepal. Hence, this study is the first to develop the Energy Security Composite Index of Nepal (ESCOIN), applying a comprehensive indicator-based approach to quantify energy security (ES) of Nepal. We build upon the notion that a country is able to trade energy when it is energy secure. We quantify Nepal's energy security and qualitatively assess the prospect for regional power trade in South Asia. A long list of 77 indicators is compiled from an extensive review of international literature. Based on the context, applicability to Nepal, data availability and conditions of multi-collinearity, this list of indicators is narrowed down to 21. Principal Component Analysis is then applied to evaluate the importance of the components for ESCOIN. Our results show that Nepal has consistently held a boundary position between “moderate” to “high” classes of ES in the last decade. We identify key reasons for this. First, the country's domestic sector is over-reliant on traditional fuels (dry-dung, firewood and agricultural residues). Second, Nepal faces a problem of suppressed demand in the absence of energy-intensive development activities in all productive sectors of the economy. Third, the growth in the energy demand is met only marginally by domestic hydropower and other renewables, and largely by increasing imports. Hence, we surmise a ‘pseudo energy secure’ state for Nepal. Although efforts are underway, electricity trade with China, Bangladesh and other South Asian Association for Regional Cooperation (SAARC) countries is economically difficult and technically challenging. Hence, cross-border electricity trading, particularly with India, can be seen as an opportunity for Nepal provided considerable infrastructural development occurs, institutional capacity is strengthened, and genuine political commitment and trust are sustained. Moreover, Nepal should focus on achieving self-sufficiency in energy through domestic hydropower and renewable sources and aim to stabilize energy consumption rather than being overly ambitious of exports, at least in the near future.

Smart Cities and International Trade Law

AbstractA ‘smart city’ is a buzz term and concept. The ‘smart city’ has mainly been discussed in the scholarly literature on urban planning, architecture, and geography. While the ‘smart city’ has been under-analyzed in international trade law, the term ‘smart city’ is commonly used in Asian trade policies. The Association of Southeast Asian Nations (ASEAN) established the ‘ASEAN Smart Cities Network’ and the ‘smart city’ is now an important market opportunity for exporting smart technologies and services to ASEAN. Against this backdrop, this article addresses how smart cities can be regulated and governed by international trade law. The trade law perspective facilitates a broader understanding of smart city governance, which includes under-explored ‘global’ regulatory dimensions concerning the interaction between local governments and foreign firms. This article selects three relevant trade areas for discussions: (1) Internet of Things in the context of trade in goods and services; (2) international standard-setting activities; and (3) data governance. It further considers what kinds of regulatory issues international smart city projects can add to the current digital trade discourse. Drawing on the smart city literature, the article points out additional problems concerning security and privacy that have not yet been acknowledged in digital trade.

Pasai Muslim Diaspora in the 16th Century on the North Coast of Java

This research aims to explain the Pasai Muslim diaspora on the North Coast of Java. This research uses historical research methods which include heuristics (primary sources such as Suma Oriental Tome Pires and secondary sources such as Asian Trade and European Influence in the Archipelago between 1500 and around 1630, Sociological Historical Studies of Indonesian Society Volume 1, Islamic Archeology of the Archipelago, Critical Review of History Banten, Sunan Gunung Jati (between Fiction and fact) Grounding Islam with a structural and cultural approach), source criticism, interpretation, and historiography. The results of this research found that the process of the Pasai Muslim diaspora in the North Coast of Java occurred in the 16th century, resulting in the formation of the Cirebon Sultanate. It also shows that the Pasai Muslim diaspora had spread to parts of West Java brought by Sunan Gunung Djati. After controlling the West Java region, Sunan Gunung Djati then founded the Sultanate of Banten, led by his son, Sultan Hassanudin.
 Keywords: diaspora, Muslim, Pasai, North Coast of Java

Assessing the trade–connectivity linkages in South Asia in post-pandemic period: an empirical investigation

The study unravels the relationship between trade and connectivity and presents a narrative to re-energise the South Asian regional economic integration in the post-pandemic period. In addition, the study also examines the effect on conflicts and institutional factors in South Asian trade. The study uses the bilateral gravity analysis in 2SLS (Two-Stage Least Squares) framework to address the endogeneity issues. The study finds that South Asia may gain enormously if they reduce the conflicts across the border and secure improvement in both hard and soft infrastructure. Given that the trade is a dynamic concept, connectivity disruption costs cause havoc to the region, which then promotes dis-integration. Facilitating business beyond the border in post-pandemic requires an enhanced trade facilitation and connectivity in the region. The renewed and shared agenda of the South Asian regional cooperation in post-pandemic should, therefore, aim to reduce both intra- and inter- regional trade facilitation gaps as well as to expand the connectivity. The process of South Asian regional integration has to contribute to narrowing the gaps by providing resources for the development of trade infrastructure. Therefore, South Asia has to enhance its own connectivity and trade facilitation arrangement to take forward the agenda of South Asian integration.

Is South Asia the missing bloc in world trade? An analysis of South Asian FTAs’ compatibility with WTO rules

PurposeSouth Asia is a region urgently seeking development, although it has failed in regional integration. It is the second least integrated region regarding the number of Free Trade Agreements (FTAs) and can thus be recognised as a missing bloc in the global multilateral system. This study aims to focus on South Asian FTAs and explores the problems of the inter-relations and compatibility between the systemic and regional trade systems.Design/methodology/approachThe study proposes a framework to benchmark the compatibility of South Asian FTAs with WTO rules. Primary data from 2000 to 2020, including descriptive analyses of reports, legal text of the FTAs, official documents and factual presentations, have been collected and analysed through thematic analysis using the proposed framework.FindingsThe study finds that, although South Asian FTAs meet most of the WTO requirements, they are not progressing toward facilitating and promoting trade. Data from 2000 to 2020 show us that South Asian FTAs have not significantly impacted trade between themselves. The study argues that, although South Asian FTAs fulfil some benchmarks, they show only a lukewarm interest in contributing to the international trading system as building blocs. It is therefore recommended that the case of South Asian trade liberalisation must be understood contextually and be given careful and exclusive attention by the WTO.Originality/valueAs such, this study is the first to claim that South Asian FTAs are not fully compatible with the WTO rules. They remain a missing regional bloc in the multilateral system, rather than a building bloc or a stumbling bloc, delaying the region’s opportunity to develop as a region and within the larger system.

Intellectual Property Regimes in Central Asia: Assessing Innovation Performance, International Agreements, And WTO Participation

This article presents a comprehensive examination of the intricate relationship between intellectual property (IP) and trade in the context of Central Asia, a region characterized by burgeoning economic development and the pursuit of international trade integration. The study has two overarching sections: the first examines the intellectual property landscape, while the second elaborates the region's participation in the World Trade Organization (WTO). IP segment commences with an evaluation of Central Asian countries' innovation performance, drawing insights from the Global Innovation Index 2023. It proceeds to dissect the patterns of ratification of international IP agreements in the region. Subsequently, it delves into the implications of intellectual property activities, offering a comparative analysis of the experiences of Kazakhstan. Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan in 2021. Shifting focus to the WTO section, the study examines the role of the WTO in Central Asia's trade and IP landscape. It provides an overview and analysis of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and its influence on IP protection. Finally, it explores the challenges and advancements in IP protection, laying bare the contrast between Kazakhstan. Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan. This article yields a multifaceted understanding of the intricate interplay between IP and trade within the Central Asian region. It unravels critical insights, emphasizing the evolving significance of IP in the landscape of international trade and offering a robust foundation for further exploration and policy deliberations in this dynamic domain.

Сравнительный потенциал торговли стран Северо-Восточной Азии

The purpose of the study is to assess the comparative trade potential of Northeast Asian countries based on the border effect estimation. In general, intraregional trade in North-East Asia (NEA) was less intensive than NEA trade with other countries. This indicates high trade barriers between NEA countries. It was determined that the reduction of trade barriers between China, Japan and the Republic of Korea can increase the total trade turnover of NEA. It was found that access to the Chinese market, as well as the inflow of Chinese direct investment in cooperation projects, can significantly increase the foreign trade of Russia and Mongolia. The estimates of the border effect for the DPRK indicated the close relations of its economy with the Chinese market, as well as North Korea’s foreign trade could significantly increase in the event of reduction high trade barriers with the Republic of Korea. The assessments indicated the existence of economic conditions for expanding trade in NEA, and China is a «connecting link» between the NEA countries. However, political conflicts between some NEA countries, as well as the political and economic influence of other countries, significantly complicate the implementation of the existing trade potential of the sub-global region

Comment on “The Impact of Foundational AI on International Trade, Services and Supply Chains in Asia”

Comment on “The Impact of Foundational <scp>AI</scp> on International Trade, Services and Supply Chains in Asia”

The Arrest of Khivan Subjects in the Russian Empire in 1836 and Russian Struggle Against Slave Trade in Middle Asia. Part I

The Arrest of Khivan Subjects in the Russian Empire in 1836 and Russian Struggle Against Slave Trade in Middle Asia. Part I

Comment on “The Impact of Foundational AI on International Trade, Services and Supply Chains in Asia”

Comment on “The Impact of Foundational <scp>AI</scp> on International Trade, Services and Supply Chains in Asia”