APEC Research Articles

Transition to a sustainable energy balance and conversion factors in economic management: Basics for transitioning to a low-carbon economy

Transitioning to a sustainable energy balance is crucial for mitigating the impacts of climate change and achieving sustainable development. Understanding energy balances and utilizing conversion factors will aid in the transition to a low-carbon economy that benefits both the environment and the economy. This paper examines the impact of extended energy balances and conversion factors on clean energy transitions in the selected Asia-Pacific Economic Cooperation (APEC) countries from 1989 to 2021, using urbanization, natural resources, and energy intensity as moderating variables. Empirical estimates are based on cross-sectional dependence, slope heterogeneity, Westerlund ECM panel co-integration, and system dynamic panel data estimation. The findings of this study provide valuable insights into the relationship between energy transitions and the associated factors. The negative association between extended energy balance and energy transitions suggests that more tremendous efforts should be made to reduce energy consumption and promote energy efficiency. Urbanization, natural resources, and energy intensity also hurt energy transitions, indicating that sustainable practices and resource conservation are necessary to ensure successful energy transitions. By focusing on energy efficiency, renewable energy deployment, energy diversification, and the improvement of conversion factors, APEC countries can pave the way for a more sustainable and resilient energy future.

Limited Practical Effect of APEC ODR: A Comparative Analysis of Platform ODR and APEC ODR

Abstract: The actual demand and effect of the ODR (Online Dispute Resolution) mechanism in the field of cross-border e-commerce dispute resolution are relatively limited, and the protection of the ODR mechanism within small and medium-sized cross-border e-commerce platforms is insufficient. The reasons why the ODR mechanism cannot be fully applied to such platform disputes include the complexity of cross-border, diverse types of disputes, cost of time and money, and limited scope of application of the ODR mechanism. In addition, the lack of neutrality and standardized operating rules of the ODR mechanism within the e-commerce platform directly affects the fairness of dispute resolution. Although APEC (Asia-Pacific Economic Cooperation) ODR mechanism has shown significant advantages in improving efficiency and ensuring information security, it fails to effectively balance efficiency and fairness in terms of application scope and practical effect. Based on this, there are insufficient fairness problems in the automatic process mechanism, evidence collection procedure, and process deadline setting in the APEC ODR process. In the future, the APEC ODR and other international dispute resolution mechanisms will continue to be more internationalized and standardized. In addition, we have to be alert to the anti-globalization risks reflected in the APEC ODR, avoid geopolitical interferences as much as possible, and prevent the emergence of trade protectionism.

Greenhouse Gas Emission Estimation Using Extended Input–Output Tables for Thailand’s Biomass Pellet Industry

Greenhouse gas (GHG) emissions from Thailand’s biomass pellet production were comprehensively assessed, with a specific focus on wood and corn pellets. Employing the extended input and output tables, the anticipated economic and environmental effects of the rising demand for biomass pellets within the Asia–Pacific Economic Cooperation region, which is projected to see an increase exceeding 33% by the year 2050, were investigated. The estimations of CO2, CH4, and N2O emissions, which were conducted utilizing an open Leontief model based on the 2015 National Input–Output Tables, covered each stage of the production process. The results show that emissions from the production of corn pellets are expected to rise steadily, from 52.91 MtCO2e in 2022 to 75.77 MtCO2e by 2030, whereas emissions from wood pellet production are set to increase more substantially, from 210.30 to 301.18 MtCO2e within the same timeframe. Data derived from surveys and interviews with corn farmers and wood pellet manufacturers informed the lifecycle data for the biomass pellet supply chain from cradle to gate. The findings suggest that Thailand’s power sector could benefit significantly from the biomass potential in the northern part of Thailand, which boasts an estimated energy content of corncob at 39 ktoe (0.0016 TJ). Market demand scenarios were explored in two forms: one where it was assumed that all biomass pellets are to be exported to Japan and South Korea, expecting a combined demand of approximately 560,262 tons by 2030, and another positing that 10% of production will be reserved for the domestic market, with a forecasted annual increase of 10% from 2020 to 2050. This paper highlights the need to prioritize low-emission renewable energy sources, expand technologies with lower lifecycle emissions, optimize the biomass supply chain to enhance efficiency, and introduce sustainable energy practices. The detailed GHG emissions analysis provides critical insights for policy formulation, underscoring the importance of sustainable transitions in the context of increasing biomass demand.

The Transformation of International Relations in East Asia at the End of the XX – Early XXI Centuries

The author examines the role of various institutions and countries in the transformation of the world order in East Asia during the period of the late XX – early XXI centuries. The work notes that at the end of the XX century, the American model of the regionalization process, carried out within the framework of Asia-Pacific Economic Cooperation (APEC), dominated. However, due to the changes in the US foreign policy doctrine and the Asian economic crisis of 1997–1998, APEC, in the early 2000s, began to give way to ASEAN+, where Japan occupied the leading position. Since the mid-2000s, China has been strengthening due to successfully carried out economic reforms and the use of various integration platforms. As a result, China began to promote its own model of globalization and regionalization in the region, which challenged the American order not only in East Asia, but also in the Asia-Pacific region. In the late 2000s, Washington sought to regain lost positions in the region by promoting the Trans-Pacific Partnership integration project, which intensified the struggle between the leading powers for dominance in the region. As a result, in the 2010s. ASEAN+ and Japan are developing the Regional Comprehensive Economic Partnership (RCEP) project, China is beginning to promote the Belt and Road international cooperation organization. As a result of the transformation of international relations caused by the movement of the world from unipolar to multipolar, there is a change in the transformation of the geopolitical situation in East Asia. The United States returned to the «traditional» methods of confrontation, increasing tension in the region and the world

Auditing road safety achievement using MEREC–ARAS–QBKM model: an empirical study for APEC member economies

Progress monitoring and action recalibrations are advocated as promising methods for improving road safety, which significantly relates to economic stability and social development. To achieve this, an auditing framework that can evaluate road safety and aid in policymaking is urgently required. To this end, this study developed a systemic decision model that integrates the method based on the removal effects of criteria (MEREC), additive ratio assessment (ARAS), and quantile-based k-means clustering (QBKM), termed MEREC–ARAS–QBKM, with the aim of auditing road safety achievements and providing corresponding policy suggestions with substantial reliability. In particular, the performance of the traditional k-means clustering model was improved by implanting quantiles to determine the initial clustering, which overcomes the uncertainty of k-means clustering owing to the variety of initial cluster centers. Multiple comparisons of empirical results based on a case study of the Asia-Pacific Economic Cooperation (APEC) member economies verified the robustness of the proposed model, demonstrating its applicability, practicability, and reliability in handling real-world multi-criteria decision-making problems in the field of road safety. The empirical findings show that road safety developments among the APEC countries are of class differentiation, suggesting an urgent regional benchmarking. Overall, the proposed methodology empowers decision-makers and policymakers in APEC to swiftly formulate effective action plans, countermeasures, and investment schemes, ultimately contributing to the enhancement of road safety performance and socio-economic benefit across APEC members.

Enhancing decision credibility in transport safety through a modified IPSI–EXPROM Ⅱ–PAM model with kernel density estimation

Effective management of decision problems with high stability and credibility is critical for conducting multi-criteria decision-making (MCDM) activities, particularly when formulating safety actions. Therefore, this study introduces a novel hybrid MCDM model that integrates the Improved Preference Selection Index (IPSI), EXtended PROMethee Ⅱ (EXPROM Ⅱ), and Partitioning Around Medoids (PAM), named the IPSI–EXPROM Ⅱ–PAM model. Specifically, the IPSI aggregation method was converted into a weighting method that assigned weights based on convergence. Moreover, a reformative nonparametric preference function was incorporated into EXPROM Ⅱ, which substantially reduced the workload of decision-makers. Furthermore, Kernel Density Estimation (KDE) was integrated into the model to estimate the distribution of the dimension-reduced scores. By identifying potential cluster structures within the data, KDE facilitates the selection of cluster number k in PAM. The performance of the model was evaluated by applying it to a real case of formulating a transport safety action for Asia-Pacific Economic Cooperation (APEC) member countries. Intensive comparisons of the empirical results demonstrated the superiority of the model in defending policy conclusions and confirmed its validity in conveying the associated policy message. In summary, this study provides government officials, decision-makers, and policymakers with a reliable decision-making tool for handling real-life MCDM activities with considerable applicability, credibility, and efficiency.

The effectiveness of the logistics systems of the APEC countries

The Asia-Pacific Economic Cooperation Forum is an international union for collaboration in the field of regional trade, simplification and liberalization of investments, which serves the interaction of countries and their economic sectors with various stages of development. Transport and logistics systems are necessary to offset the shortcomings caused by issues with safety, usefulness and, most importantly, supply efficiency. The forum's management regularly works out strategies to solve these problems without noticeable losses for resource bases such as financial security and labor. Significant differences in the development of the association countries require an analysis of the effectiveness of logistics as a tool for the growth of the participating economies, ensuring conditions for constant progress and adaptation of the best foreign experience. The authors concluded that the degree of infrastructure quality affects the effectiveness of logistics services, confirmed the close relationship between the level of economic competitiveness of the country and the degree of its logistics efficiency, found out that the criteria for logistics efficiency are based on indicators of the pace of digitalization of transport activities. It is also established that Russia is one of the regions that can be characterized as catching up with the rest in terms of logistics efficiency, therefore, domestic transport industry specialists should study and, depending on the conditions, introduce technologies from the world's leading global players, creating a comparative advantage over other participants.

Interconnectedness and return spillover among APEC currency exchange rates: A time-frequency analysis

By combining TVP-VAR Model (time domain connectedness) and TVP-VAR based Baruník and Křehlík model (frequency domain connectedness), this study analyzes the impact of the COVID-19 pandemic, the Russia-Ukraine war, and the Silicon Valley Bank (SVB) collapse on the Asia Pacific Economic Cooperation (APEC) forum currency exchange rates. The results reveal that APEC currencies have time-varying effects (tend to cluster in appreciation and depreciation patterns in both the short and long term) and have generated higher total return spillover during COVID-19 (in the time domain) than the Russia-Ukraine war and SVB collapse. During COVID-19 (87.18 %) (total return spillover), impacts were more severe than the Russia-Ukraine crisis (79.49 %) and the Silicon Valley Bank collapse (75.55 %). Moreover, the South Korean won, Thai Bhat and Australian Dollar are identified as consistent shock transmitters, and Malaysian Ringgit, Philippine peso, Indonesian Rupiah, and Chinese Yuan as consistent shock receivers in the time domain. The findings have substantial repercussions for financial regulators and investors.

Information and communication technology, economic globalization, and environmental sustainability inAPECnations: Insights fromLCCandEKChypotheses testing

AbstractAs the world grapples with pressing ecological issues, this study delves into the essential concept of environmental sustainability, following the sustainable development goal (SDG) 13, aiming to uncover pathways for a greener future. For this, the study examines the effects of information & communication technology (ICT) and economic globalization (ECG) on environmental sustainability (ENS) from a new angle, focusing on three ENS proxy variables; carbon dioxide emission (CO2e), ecological footprint (EFP), and load capacity factor (LCF), for better ecological assessment. Dissimilar to prior studies, the current study simultaneously tests the load capacity curve (LCC) and environmental Kuznets curve (EKC) hypotheses. The study employed advanced panel data estimation techniques along with causality tests, taking into account cross‐sectional dependence and slope heterogeneity for Asia‐Pacific Economic Cooperation (APEC) economies, for the period 1991–2020. The long‐run empirical outcomes reveal that information & communication technology, economic globalization, renewable energy consumption, and green financial development have the potential to enhance environmental sustainability; whereas industrialization has a detrimental influence over time. Further, the LCC and EKC hypotheses are supportable in APEC economies. Considering the overall findings there is a need for a favorable policy environment, that is APEC nations should bolster up the deployment of green ICT infrastructure; promote enhanced and collective efforts with global partners for ECG; expand the adoption of renewable energy; direct green financial development to areas of greatest benefit, and well‐managed industrialization as part of their environmental policies.

The effects of weather shock on income inequality: evidence from Asia‐Pacific Economic Cooperation (APEC) member economies

This study empirically investigates the dynamic effects of weather shock on within‐country income inequality. Using panel data of 17 Asia‐Pacific Economic Cooperation (APEC) member economies, we estimate impulse responses via the local projection method. Moreover, temperature and precipitation shocks, defined as deviations of temperature and precipitation from their historical norms, are exploited to measure country‐specific weather shocks. The empirical results reveal the following. First, temperature and precipitation shocks deteriorate income inequality measured by the Gini index; these effects are long‐lasting. Moreover, asymmetric effects exist: heat waves and droughts more significantly increase income inequality than cold waves and floods. Lastly, current redistribution policies do not seem to effectively mitigate those adverse effects.

REGULATION OF CROSS-BORDER DATA FLOW AND ITS PRIVACY IN THE DIGITAL ERA

We are living in a world where information systems are becoming a new weapon to control the future. When the data flows across national borders, it becomes an invaluable resource for economic and informational development in any nation. Today, cross-border data flows are an important component of international trade because companies are frequently transfer customer’s and employee’s data across different countries. This paper will examine the importance of the free flow of cross-border data and its privacy concerns. It also examines the failure of the Information Technology Act, 2000, and the Digital Personal Data Protection Act, 2023, to provide protection from cross-border data transfer; specifically, the Digital Personal Data Protection Act, 2023, is silent on the criteria of listing countries for data transfer and the processing of personal data of those data principals who are living outside India. Some countries have implemented laws pertaining to “data localization” as a means to restrict the movement of data outside their respective borders, but it affects international trade and development. So, it raises a question: What kind of and how much data do nations have to restrict for cross-border data transfer internationally? This paper analyse the General Data Protection Regulation of the European Union, the Cross-Border Privacy Rules of the Asia-Pacific Economic Cooperation of the United States, and the Privacy Shield Framework between the EU and the US. In the end this paper concludes with suggestions for the privacy of cross-border data and the need of uniform law for its worldwide applicability.

Distance Learning in a Cyber Islamic University: Best Experience from Indonesia

Backgroung: The quality of online learning is a demand for the State Islamic Institute of Syekh Nurjati Cirebon as a pilot project for a cyber-based Islamic university which since 2021 has had a distance learning program of Islamic Education Study Program. The Asian Association of Open Universities (AAOU) and Academic Partnership and The Asia-Pacific Economic Cooperation (APEC) organizations provide some criteria for the quality of online learning. Mixed research with sequential methods was carried out on the study program academic community using closed and open questionnaires online and through some focus group discussions. The results show that from 8 quality dimensions (leadership management, student and learner profile, student information and support, assessment and integrity, infrastructure, learning media and resources, learning design and development, curriculum design, and learning outcomes) the average score is in the range of 84-86. This shows that the implementation of the distance learning program is good, with the curriculum design dimension having the highest score while learning outcomes having the lowest score. This is supported by the results of open statements and some focus group discussion agendas that the curriculum is very in line with the development and profile of the study program. However, until now the study program has not had any graduates. Optimizing and updating the Learning Management System, standardizing assessments, and accuracy of feedback are the aspects that need to be improved by the distance learning program. Objective: The aim of this research is to determine the level of service quality and student expectations regarding distance education carried out by the Syekh Nurjati State Islamic Institute, Cirebon, Indonesia. Method: This research adopts mix methods approach with sequential explanatory design. The data obtained through online closed and open questionnaires as well as Focus Group Discussion (FGD) with managers. Results and Discussion: The results show that from 8 quality dimensions (leadership management, student and learner profile, student information and support, assessment and integrity, infrastructure, learning media and resources, learning design and development, curriculum design, and learning outcomes) the average score is in the range of 84-86. The results obtained revealed that implementation of the distance learning program is good, with the curriculum design dimension having the highest score while learning outcomes having the lowest score. This is supported by the results of open statements and some focus group discussion agendas that the curriculum is very in line with the development and profile of the study program. Research Implications: The implication of this research are as follows: Optimizing and updating the Learning Management System, standardizing assessments, and accuracy of feedback are the aspects that need to be improved by the distance learning program.

Impact of green logistics on Vietnam's regional trade

This study investigates the impact of green logistics on Vietnam's regional trade within the frameworks of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (ASEAN), and Asia-Pacific Economic Cooperation (APEC) from 2007 to 2020. Employing a newly formulated Green Logistics Performance Index (GLPI) derived through Principal Component Analysis (PCA), the research assesses how sustainable logistics practices influence trade performance. An extended gravity model is utilized to analyze the impact of green logistics across different regional trade agreements. The findings suggest that improved green logistics correlate positively with enhanced trade outcomes, highlighting the dual benefits of sustainability efforts in the environmental and economic realms. The study contributes to the limited empirical research on the intersection of green logistics and trade in Vietnam, offering a methodological approach for future analyses in this field. It provides valuable insights for businesses and policymakers aiming to align economic growth with sustainability objectives.

Evaluating renewable energy consumption efficiency and impact factors in Asia-pacific economic cooperation countries: A new approach of DEA with undesirable output model

Balancing economic growth with environmental protection is a global priority. Both developed and developing nations face the challenge of optimizing renewable energy use to achieve sustainable development while minimizing ecological harm. This study employs the Data Envelopment Analysis (DEA) model, incorporating undesirable output, to assess the efficiency of renewable energy consumption across 21 member countries of the Asia-Pacific Economic Cooperation (APEC) from 2011 to 2020. The main variables include foreign direct investment, total energy consumption, total renewable energy capacity as inputs, and gross domestic product growth and greenhouse gas emissions as desired outputs. Results reveal varying levels of renewable energy consumption efficiency, with Brunei, Japan, South Korea, and Hong Kong exhibiting the highest efficiency, while Russia, China, and Vietnam demonstrate the lowest. Notably, developed nations display greater efficiency in utilizing renewable energy compared to their developing counterparts. Moreover, optimizing foreign direct investment, renewable energy consumption, and total renewable energy capacity can enhance overall energy efficiency. By leveraging empirical evidence and estimation techniques, the study provides actionable recommendations for policymakers, emphasizing the pivotal role of financial development and green finance initiatives in promoting sustainable energy development across APEC member countries.

ANALISIS TRANSMISSION OF MONETERY POLICY TERHADAP PERTUMBUHAN EKONOMI DAN KEUANGAN PASCA PEMULIHAN EKONOMI IN FIVE APEC COUNTRIES

The aim of this research is to determine and investigate how the global economic crisis in 2020 affected financial and economic growth after the Covid-19 crisis and the economic recovery that followed. Secondary data covering the period 2013 to 2023 was used in this research. Money supply, real interest rates, exchange rates, investment, inflation, and gross domestic product are the variables taken into account. This research examines the short-term and long-term impacts of monetary policy on financial and economic growth in five Asia Pacific Economic Cooperation (APEC) countries using the Structural Vector Autoregressive (SVAR) approach. Three variables investment, reallinteresttrates, and moneyxsupplyido not significantly influence1economicxor financial growth, according to the study's findings, while two variables inflation and exchange rates have a positive impact on economic and financial growth.

Does the "Belt and Road Initiative" benefit the environment? Insight from analysis of intra-industry trade in environment goods.

The expansion of the Belt and Road Initiative (BRI) has raised a wide range of concerns about its environmental impact. Therefore, from the perspective of environmental impacts, this study used the two-way fixed effect staggered differences in differences (TWFE Staggered DID) method to examine the impact of the BRI on the Environment Goods (EGs) intra-industry trade (IIT) between China and other Belt and Road (B&R) countries, including a sample of 191 countries, covering the period from 2010 to 2019 for eliminating the impact of COVID-19 and the financial crisis in 2008 and 2009. Because only 135 countries signed a Memorandum of Understanding between 2010 and 2019, this study treated these B&R countries as the study group, and the other 73 countries (non-B&R countries) as the control group. This study described EGs using the 54 6-digit code Environment Goods in Harmonized Commodity Description and Coding System listed in the "APEC LIST OF ENVIRONMENT GOODS" published by the Asia-Pacific Economic Cooperation in 2012, and used the intra-industry trade index proposed by Grubel and Lloyd in 1971 to measuring dependent variable. The research results indicated that the BRI has significantly promoted bilateral EGs IIT. The mechanism test implied that, in addition to direct impacts, the BRI also has indirect impacts by boosting the energy restructuring of B&R countries. These results prove that the BRI has positive impacts on the environment. The heterogeneity test showed that there is a heterogeneous impact depending on the type of IIT, product categorization, B&R countries' income levels, and geographic environment. This study not only gives theoretical and empirical evidence of the positive environmental impacts of the BRI, but also provides practical guidance for the development of EGS IIT between China and B&R countries, thereby contributing to global carbon emissions reduction and environmental governance to some degree.

The Influence of Agricultural Exports, High-Technology Exports, Investment, and Regulatory Quality on the Gross Domestic Product of APEC Member Countries

Gross Domestic Product (GDP) is one of the macroeconomic indicators that reflects the level of welfare of a country's population. The APEC (Asia-Pacific Economic Cooperation) forum has the main goal of promoting economic growth and enhancing prosperity in the Asia-Pacific region. This is done by encouraging and facilitating more open trade and investment in the region. APEC member countries have different export characteristics, namely agricultural exports and high-technology exports. This study analyzes the influence of agricultural exports, high-technology exports, Foreign Direct Investment, and regulatory quality on the Gross Domestic Product of APEC member countries. The research data used are secondary data from the World Bank from 2011 to 2020, analyzed using the Fixed Effect Model approach of panel data regression method using E-Views 12. The results show that simultaneously, agricultural exports, high-technology exports, Foreign Direct Investment, and regulatory quality have a significant influence on the economies of APEC member countries. Partially, high-technology exports and regulatory quality have a positive and significant impact, while agricultural exports and Foreign Direct Investment have a positive but not significant impact on GDP. APEC countries should focus on productivity by harnessing technology and achieving inclusive economies for societal welfare.

Sustaining Integrity: The Role of Education and Macroeconomic Variables for Corruption Eradication

This study aims to analyze the effect of education level and several macroeconomic variables on the corruption index in Asia-Pacific Economic Cooperation (APEC) member countries. This study uses the two-stage least square (2SLS) estimation method. This study found that the lifelong learning index, higher education participation, and foreign direct investment have a negative and significant effect on corruption in all APEC member countries and developing country members. Secondary education and government efficiency index have a negative and significant effect on corruption in all countries (all member states, developed and developing countries). GDP per capita and economic openness have a positive and significant effect on corruption levels in APEC member states and developing countries. The fight against corruption must be immediately implemented as a political influence. Delaying this will reduce the effectiveness of future policies. Institutional reforms bring more positive benefits in countries that are really fighting corruption.

Mexico and the forum for economic cooperation, Asia-pacific, 1990-2019: Determinants of the sustainable productivity of the wood industry

The purpose of this research is to identify the determinants of the productivity of the wood industry for the economies that make up the Asia-Pacific Economic Cooperation Forum (APECF) in the period 1990-2019. As a dependent variable, a sustainable productivity index is created to measure this productivity. Using the econometric method of panel data, the impact of employment, capital stock, and innovation on the sustainable productivity of the wood manufacturing industry is found. The variable capital stock (SC) is estimated using the Perpetual Inventory Method (PIM) and incorporating an adjustment factor for the absence of the first observation. The findings indicate that there is a significant relationship between the sustainable productivity index and the variables employment, innovation, and capital stock. The study's findings demonstrate that productivity exists when there is a balance in the use of resources or public goods. The contribution that is made to the literature is about authentic productivity that promotes the improvement of the quality of life of the population as well as the responsible use of finite resources. This research examines the practical implications of sustainable forest resource utilization, specifically focusing on sustainable productivity.

A Brief Analysis of the Influence of Foreign Culture on the Development of Thai Culture

Thailand is a member and founding member of the Association of Southeast Asian Nations, as well as a member of the Asia-Pacific Economic Cooperation, the Asia-Europe Meeting and the World Trade Organization. As one of the ancient countries in Southeast Asia with a history of more than 700 years, the development of its culture runs through the development of Thailand from ancient times to the present, and has a far-reaching impact on the development of Thai society that cannot be ignored. As for the development process of Thai culture, especially the formation and roots of culture, it is inevitable to involve the penetration and influence of foreign culture, and the so-called foreign culture can be divided into Eastern culture and Western culture. Western culture is generally synonymous with European and American culture; Oriental culture is more representative of traditional Chinese culture and ancient Indian culture. Geographically, Thailand is located in Southeast Asia, that is, in the middle of China and India. At the same time, from the perspective of cultural regional distribution, Thai culture is also located between the two eastern cultural regions of Chinese culture and Indian culture. To sum up, the influence of foreign cultures on the development of Thai culture cannot be underestimated or ignored. That's what we're talking about today: the influence of foreign cultures on the development of Thai culture.