Regional Comprehensive Economic Partnership Research Articles

Layout analysis of the RCEP international airline network based on hub identification using improved contribution matrix

The signing of the Regional Comprehensive Economic Partnership agreement brings new opportunities for the development of international air transportation. Faced with fierce competition, it is worth studying how hub airports should enhance competitiveness, and how low-cost carriers and full-service carriers should optimize the RCEP international airline network layout for better development. Aiming at providing suggestions for the development of hub airports, low-cost and full-service carriers in the RCEP international airline network, this paper identifies the hub airports, analyzes the layout of the RCEP international airline network, and the multi-layered characteristics based on an improved contribution matrix using data from 2010 to 2019 collected from the Official Airline Guide (OAG). This method comprehensively considers attributes of hub airports and the multi-layered characteristics of the airports and routes. The layout analysis indicates that the RCEP international transportation market presents a more open environment for competition and cooperation where base carriers are often the biggest supporters of hub construction. The multi-layered characteristics analysis reveals that low-cost carriers contribute more towards opening up new RCEP routes than full-service carriers. It is advised that carriers newly entering the RCEP international aviation transportation market and low-cost carriers dedicate to establishing new routes around their hub airports to monopolize this market and enhance their market share, whilst full-service carriers consolidate existing routes and increase route density to achieve economic benefits.

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.

Time-frequency extreme risk spillovers between COVID-19 news-based panic sentiment and stock market volatility in the multi-layer network: Evidence from the RCEP countries

This study extends extant discussions on regional integration by exploring risk spillovers between news-based panic sentiment and stock market volatility among Regional Comprehensive Economic Partnership (RCEP) members during the COVID-19 pandemic. We innovatively estimate quantile-based spillover indices in both time and frequency domains and construct the multi-layer network. Both static and dynamic risk spillover patterns in the "RCEP panic-stock network" are outlined. It is found that risk spillovers are predominantly transmitted from the "panic-layer network" towards the "volatility-layer network". Besides, regression analyses are employed to investigate whether general features of COVID-19 media reporting affect the spillovers of panic sentiment at the country level. The results show that the magnitude of panic spillovers tend to be positively associated with overall media coverage and negatively with overall media sentiment, especially at the middle and lower quantiles.

Impacts of the US-China Trade Tension and RCEP on Vietnam-China Trade Balance

The paper aims to analyze the trade balance between Vietnam and China and assess the impact of its key determinants, with a focus on the US-China trade war, using the autoregressive distributed lag model for quarterly data from Q1 2009 to Q4 2022. The statistical analysis shows that although Vietnam's trade balance with China shows increasing deficits, the US-China trade war has a positive impact on Vietnam as its export-import ratio with China increases in both the long and short run. We also find that the impact of participation in the Regional Comprehensive Economic Partnership (RCEP) is positive but not statistically significant. We also find evidence that several factors have a positive and significant impact on the trade balance, including Vietnam's growth rate, Vietnam's industrial production index, and China's population. On the other hand, some factors, such as the exchange rate between Chinese yuan and Vietnamese dong and the population of Vietnam, are found to have a significant negative impact. These findings can provide evidence to help Vietnamese businesses and policymakers formulate trade policies with China, especially in the current complex geopolitical context.

China-ASEAN Bilateral Digital Trade under the RCEP Digital Trade Framework: Current situations, Challenges, and Responses

The Regional Comprehensive Economic Partnership (RCEP) address the increasing need for digital trade cooperation between China and ASEAN, reflecting their growing demands in this area. However, China and ASEAN face challenges in their digital economic and trade collaboration, including the "digital divide," power struggles over sovereignty, governance of data localization, etc. The paper analyzes the current state and future direction of global digital trade development, interprets the digital trade rules within RCEP and analyze their implications for China-ASEAN bilateral trade, then examins the three key aspects of China-ASEAN digital trade development and four major challenges faced by China-ASEAN digital trade within the framework of RECP, eventually proposes countermeasures and recommendations to enhance China-ASEAN digital trade from four key perspectives.

Research on the Resilience Assessment of Cross-border E-commerce Supply Chains under the RCEP Agreement

Under the RCEP (Regional Comprehensive Economic Partnership) agreement, cross-border e-commerce supply chains face the multiple risks that can lead to supply chain disruptions, severely affecting a nation's economic security, trade stability, and international market competitiveness. Enhancing supply chain resilience is a key method to address supply chain disruptions. This study, based on an analysis of the characteristics of cross-border e-commerce supply chains, utilizes Grounded Theory and Social Network Analysis to construct an evaluation indicator system. The resilience indicator system for cross-border e-commerce supply chains under the RCEP agreement developed in this study aids in the efficient and stable development of businesses.

Validating India’s Withdrawal from RCEP and Its Regional Future

The withdrawal of India from negotiations on the world’s largest trade pact, the Regional Comprehensive Economic Partnership (RCEP), in November 2019 was a major setback for proponents of regional economic unity. This paper tries to evaluate India’s concerns and also the way forward for India. A review of trade between RCEP countries post-implementation is done to analyze India’s stand against joining the block. India decided to opt out of the agreement because of adverse trade balance, impact on the dairy sector, economic slowdown, experience with Free trade agreements (FTAs), China factor, data localization, rules of origin, and the experience of ASEAN countries with Sino-FTA have been some of the factors responsible for this decision. Bilateral trade agreements with Japan, Malaysia, Singapore, Thailand, Korea, Rep.and ASEAN were already in place. So, trade between India and 12 RCEP member countries would not have changed after India’s inclusion in RCEP. There was fear of a massive surge in imported manufactures from China and dairy imports from Australia and New Zealand. This paper also evaluates the long-term repercussions of this decision and whether India missed out on becoming part of the global value chain & having greater market access through this block. India’s experience following protectionist policies did not yield the desired results in the past. So, an in-depth analysis has been done to validate if India has made a mistake by not joining RCEP or if India’s concerns and fears were justified and its regional future.

The Recent Development On The Discipline Of Services Domestic Regulation And The Debate On The Necessity Test: From The Perspective Of The CPTPP, RCEP, And SDR Reference Paper

The discipline of services domestic regulation (“SDR discipline”), with a view to ensuring progressive liberalization of trade in services while also respecting the national regulatory prerogatives at the same time, addresses issues concerning the formulation, publication, and administration of SDR, and the authorization for the supply of a service. In addition to Article VI General Agreement on Trade in Services (GATS), an increasing number of international trade agreements has developed the SDR discipline with GATS-plus or GATS-extra characteristics, which helps enhance the transparency and regulatory quality of SDR, promote trade facilitation and increase the predictability and efficiency of authorization procedures for the services providers hoping to do business in foreign markets. This paper investigates the negotiating history of the SDR discipline at the multilateral, plurilateral, and regional levels, explores the evolving trends of the SDR discipline from the perspective of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Regional Comprehensive Economic Partnership (RCEP), and the Reference Paper on SDR, and addresses the debate on the necessity test surrounding the SDR discipline negotiation. services domestic regulation, necessity test, transparency, trade facilitation, predictability of authorization, gender equality

A Comparative Analysis of Key Integration Blocks

Why is integration progressing successfully in some parts of the world but not in others? Why are only some integration blocks hugely important for member countries? And why this is not the case globally? This article provides a comparative analysis of international economic structures, aiming to identify the factors that contribute to the validity and effectiveness of integration.
 The article examines eight economic blocks: the European Union, the Agreement between the United States of America, the United Mexican States and Canada, the Southern Common Market, the Association of Southeast Asian Nations, the Euroasian Economic Union, the South Asian Association for Regional Cooperation, the African Union, and the Regional Comprehensive Economic Partnership. We take into account five stages of integration: free trade area, customs union, single market, economic union, and monetary union. To understand the progress of integration, one must consider a number of developments and indicators. The coefficient of economic gravity, which we describe in this paper, is a convenient method to find out how important integration structures are for contracting states.

Policy Feedback Loop: Central-Local Interactions in China’s International Economic Policy

ABSTRACT The authors propose the use of an interactive model to explain the way the central government and the local governments carry out the formulation and implementation of China’s foreign economic policies. Case studies on the Regional Comprehensive Economic Partnership (RCEP) and the China-Europe Railway Express (CERE) show a policy feedback loop between the central government and the local governments. While the local governments make adjustments to comply with the central government’s directive, their policies and measures also have a significant impact on the central government’s foreign policies. The findings suggest that neither the autonomy of local governments nor the authority of the central government in foreign economic affairs are eroded under Xi’s leadership despite notable recentralisation in the past decade. Instead, both the central government and local governments engage in a continuous, interactive partnership to formulate and execute China’s foreign economic policy.

Does digital finance contribute to regional economic growth? Evidence from RCEP countries

This study examines the developmental characteristics of the digital finance cooperation of China and the Regional Comprehensive Economic Partnership (RCEP) in the global economic transition to the digital era. Using a fixed-effects model of panel data from RCEP countries from 2011 to 2021, the study explores the mechanisms between digital finance development and regional economic growth. Furthermore, it conducts a spatial analysis to obtain geographic variables, using their interaction term with internet penetration as instrumental variables. The results show that digital finance development can effectively promote regional economic growth, and an endogeneity test confirms its robustness.

Analysis of Malaysia's Export Potential of Palm Oil and Its Products to RCEP Member Countries

This study explores the export potential of the Malaysian palm oil industry to RCEP (Regional Comprehensive Economic Partnership) member countries based on the regional economic framework. The panel data from 2018 to 2022 were analyzed using the Trade Gravity Model, RCA (Revealed Comparative Advantage), and TCI (Trade Complementarity Index) indices. The results categorize the fifteen RCEP member countries into three potential classes based on the type of potential. In addition, it was found that the trade complementarity of RCEP member countries showed a significant positive correlation with the export size of Malaysian palm oil and its products. The study provides insights into the trade pattern of palm oil in the region and provides a valuable reference for future trade policy formulation and industry development and provides a basis for research related to the sustainable development of the Malaysian palm oil industry.  

Why is there no investor-state dispute settlement in RCEP? bargaining and contestation in the investment regime

Abstract The Regional Comprehensive Economic Partnership (RCEP) is one of the most important mega-regional trade agreements signed to date. Yet, it failed to include an Investor-State Dispute Settlement (ISDS) mechanism in its investment chapter. What explains this omission? To unpack this, we examine international negotiations as a two-step process. In the first stage, we theorize that initial preferences towards ISDS are based on countries’ orientation toward foreign direct investment (FDI), experience with ISDS, and past treaty practice. Second, we theorize that during protracted negotiations, adverse regime developments and domestic politics can have a profound impact on treaty design. To test our framework, we examine the RCEP negotiations. Our analysis shows that mounting cases as well as the eroding norm of ISDS in other treaties lowered support for ISDS as the negotiations progressed. Then, a change of government in Malaysia shifted that country’s position dramatically, which tipped the balance against ISDS in the final round of negotiations. Our findings have important implications for the international investment regime. They highlight the factors that determine countries’ initial preferences while also demonstrating the importance of developments during the negotiations, which can lead to the abandonment of the institutional status quo.

Textile Trade of India with RCEP Members: A General Equilibrium Assessment

The study quantified Indian textile trade with selected Regional Comprehensive Economic Partnership (RCEP) countries, including Australia, China, Japan, Malaysia, South Korea, and Vietnam, based on their proportional share of the Indian textile trade to analyze the impact of RCEP on the Indian textile trade. The primary objective was to investigate the impact of a 10 per cent reduction in existing Indian tariffs with selected RCEP nations through Global Trade Analysis Project (GTAP) modelling. The study demonstrated that if India reduced tariffs on textile imports, it would allow a flood of imports from other competitive countries. As per the results, India will only achieve prosperity when selected RCEP nations reduce or eliminate their tariffs. The decision to withdraw from RCEP seems reasonable regarding its textile exports from India.

Assessing the impact of green logistics performance on vietnam's export trade to regional comprehensive economic partnership countries

This article uses a gravity model framework to examine the impact of green logistics on Vietnam's exports to countries participating in the Regional Comprehensive Economic Partnership (RCEP). The study uses a generalized least squares (GLS) estimation method based on panel data for the period 2010-2018 and has reliable sources. The results of empirical research have found the following main findings: (i) Logistics performance, encompassing cost, reliability, and time-related factors, significantly and positively influence Vietnam's exports; (ii) The interaction effects between supply chain input components (customs, infrastructure, and services) and CO2 emissions from the transportation sector have a positive impact on Vietnam's exports; (iii) The supply chain input components demonstrate direct and positive effects on exports when implemented in conjunction with their interaction effects with CO2 emissions from the transportation sector; (iv) The emissions of CO2 from Vietnam's transportation sector exert a negative influence on exports; (v) Adopting a green logistics approach that focuses on reducing CO2 emissions from the transportation sector demonstrates a positive influence on Vietnam's exports. This influence is observed through direct and moderating effects, indicating the potential for sustainable practices to foster export growth. These research findings provide valuable insights for managers and policymakers in the formulation of informed decisions related to the development and promotion of green logistics. By embracing sustainable practices and aligning export growth with environmental goals, Vietnam can enhance its competitiveness while contributing to a greener future.

The Impact of Participating in the Regional Comprehensive Economic Partnership (RCEP) Agreement and Potential Export Markets for Vietnamese Rice: An Application of Augmented Gravity Model

In this study, we investigate the potential effects of the Regional Comprehensive Economic Partnership (RCEP) agreement on Vietnam’s rice exports from 2000 to 2016. For this analysis, we employ the panel data augmented gravity model with some modifications. The estimated results suggest a positive relationship between Vietnam’s per capita export and the capita real gross domestic product (GDP) of the importer, Vietnam’s rice production, export price, and ASEAN dummy. We confirm that there is a negative relationship between Vietnam’s per capita rice export value and import country agricultural land and import tariffs. Additionally, this paper forecasts Vietnam’s rice export value per capita at each market in RCEP partners by using the autoregressive model. Our forecast results show that among RCEP members, Vietnam has potential markets if import tariff reductions are lowered in Singapore, Brunei, Korea, Japan, and Malaysia. To reap the benefits of rice exports’ potential, Vietnam must move from low-grade and cheap rice to high-quality rice production instead of expanding rice production and exports with the following implications: changing its present rice trading partners to potential markets and adopting market-oriented policies to meet the international demand and to increase the export elasticity of rice.

Research on the Development Opportunities and Strategies of Guangzhou Cross-Border E-commerce Comprehensive Pilot Zone under the RCEP Agreement

This paper provides a thorough analysis of the development opportunities and strategies for the Guangzhou Cross-Border E-Commerce Comprehensive Pilot Zone in the context of the Regional Comprehensive Economic Partnership (RCEP) agreement. The article begins with a review of the background of the RCEP agreement and its role in promoting economic cooperation, especially in the Asia-Pacific region, followed by an analysis of the current development status, main opportunities, and challenges facing the Guangzhou Cross-Border E-Commerce Comprehensive Pilot Zone under the current international circumstances. Through empirical research, the paper proposes a series of strategic recommendations to promote the development of the pilot zone, aiming to provide references for policy-making and regional economic development.

Research on Export Sophistication, Efficiency, and Potential of Agriculture Product Trade between South Korea and RCEP Countries: Based on the Stochastic Frontier Gravity Model

Purpose - This study examines the structure of agricultural export sophistication, export efficiency, and the potential of South Korea’s agricultural products for Regional Comprehensive Economic Partnership (RCEP) countries. Design/Methodology – This study evaluates the agricultural export sophistication of RCEP countries and investigate export sophistication’s effects on the efficiency and potential of South Korea’s agricultural exports to RCEP countries. To this end, we construct a stochastic frontier gravity model (SFGM) based on panel data of agricultural product trade and other factors that impact agricultural imports and exports between South Korea and 36 countries from 2001 to 2020. Using this “one-step method” trade inefficiency model, we evaluate the impact of export sophistication on export efficiency and potential and calculate trade efficiency and potential. Findings – The results reveal a growing trend in the structure of global and RCEP countries’ agricultural export sophistication where the export sophistication of the target countries positively impacts Korea’s agricultural exports to those nations. In addition, RCEP member countries accounted for 50% of the top ten countries in the 2020 trade efficiency ranking, and the average trade efficiency of RCEP member countries show an upward trend. Originality/value - South Korea is geographically close to most RCEP countries, which facilitates agricultural trade. Moreover, there are significant differences in climate conditions and resource endowments between South Korea and most RCEP countries, providing opportunities for expanding agricultural trade with these nations. This study contributes to the extant literature by further exploring the trade efficiency and potential of Korea’s agricultural exports to RCEP countries by considering export sophistication as an important potential factor affecting the competitiveness of Korea’s agricultural exports and analyzing the relationship between the structure of export sophistication and the trade efficiency of Korea’s agricultural product exports to RCEP members.

China's Economic Evolution: From WTO Accession to Global Leadership

This study provides a comprehensive exploration of the transformative journey of China's economic policies and global engagement from its accession to the World Trade Organization (WTO) in 2001 to the present day. The analysis spans three distinct phases: the initial shift from a centrally planned to a market-oriented system, the full integration into the global economic system marked by meticulous adherence to WTO commitments, and the subsequent era characterized by the Belt and Road Initiative and high-quality development strategies. Examining key milestones such as the establishment of free trade zones, internationalization of the yuan, and participation in significant agreements like the Regional Comprehensive Economic Partnership (RCEP) and the China-EU Comprehensive Agreement on Investment (CECAI), the study highlights China's pivotal role in shaping global economic structures. The findings underscore China's commitment to opening-up, fostering international cooperation, and contributing significantly to reshaping the global economic landscape.

Indonesia and ASEAN Chairmanship in 2023: Leading the Region in Strengthening Relations with China

Indonesia, the largest economy in Southeast Asia, plays a crucial role in the region and contributes significantly to the regional bloc's stability, economic growth, and diplomatic initiatives. The archipelago serves as a pivotal anchor within the Association of Southeast Asian Nations (ASEAN), stipulating political leadership and strategic direction over the years. Indonesia fosters trade and investment within the region, as seen from Indonesia's role in completing the Regional Comprehensive Economic Partnership (RCEP) negotiation, the largest free trade agreement in the world involving ASEAN and several trading partners such as China, Japan and South Korea (The ASEAN Secretariat, 2023). Indonesia promotes dialogue and cooperation to address regional challenges such as trans-boundary issues, security concerns, and environmental sustainability. Indonesia is also currently one of China’s most important partners in Southeast Asia. China is now Indonesia's largest trading partner and export market, with China's official data showing that in 2022 the bilateral trade reached $149.1 billion, up 19.8 percent year-on-year. In the same year, China was the second-largest source of investment in Indonesia in 2022, with $8.2 billion (Duqiang, 2023). In addition, China's Belt and Road Initiative (BRI) has played a major role in supporting infrastructure development in Indonesia. Both nations continue to engage in high-level diplomatic dialogue and seek common ground on various regional and global issues. This article attempts to show the role that Indonesia plays as it continues to show the way for other ASEAN countries to navigate economic challenges and, at the same time, forge stronger ties with China. This article also examines the bilateral relationship between Indonesia and China and how it affects Indonesia’s capability to lead other ASEAN countries, especially after Indonesia’s ASEAN Chairmanship in 2023.