Regional Economic Cooperation Research Articles

Analysis of Road 3 Asia (R3A)’s Impacts on Border Trade of Thailand

Trade opening has become an important asset for economic development in many countries and an important engine of economic globalization (Wang, Shan-Li, et al, 2020). With continuous foster on the regional economic cooperation, countries with close proximity further promote the mobility and development of infrastructures and policies. Nevertheless, testing a trade integration model of bilateral trade is not sufficiently well estimated with the Bayesian approach to provide practical evidence of trade integration. Moreover, in identifying the factors determining trade integration, testing using the Bayesian gravity equation is essential. After performing a series of simulation experiments, a relationship between bilateral trade volume and simulated trade determinants was predicted for the trade model. The results of the estimated coefficients on GDP in Thailand and GDP of Yunnan province, China are positively significant predictors of the trade growth. The distance between the countries has a negatively significant estimation that implies barriers in trade. The model predicts trade integration, especially towards the trade on route R3A. The Bayesian approach of the gravity model gives robust estimates for determining the impact factor for the bilateral trade, including the fact that the elasticities of total trade volume with respect to distance, population, and the exchange rate of Thailand are negative while the GDP per capita are positively significant. Further, economic size, GDP per capita, and exchange rate of the destination, and population and area of Yunnan province are positively predicted by the model. The estimated parameters are directly the elasticities, in which increases in GDP is consistent with the higher trade volumes. Further, evidence of the gravity equation is used for understanding trade potential, and after some integrations, the estimation is applied for the real trade. The measures of bilateral trade resistance or costs associated with the trade flow has influenced the expanding of the bilateral trade in the model in the GMS economies. Finally, trade integration can be implemented with evidence and estimates of the gravity model. The Bayesian experiment for the estimation of the impacts of the trade integration on route R3A predicts an increase of GDP, population, exchange rate, and GDP per capita as predominant predictors in the Bayesian gravity model. Thus, the results revealed that economic size, bilateral distance, and GDP per capita has affected the plausible trade agreements for trade integration on route R3A.

Analysis of the Difficulties and Countermeasures of East Asian Regional Economic Cooperation

Global economic development witnessed two significant developments during the 1990s: economic globalization and regional economic integration. East Asia's economy has been steadily developing, making it one of the most promising areas in the world economy. Nonetheless, East Asia's economic cooperation is developing far more slowly than that of the European Union and the North American Free Trade Area. East Asian nations have deeply realized that the only way to increase the competitiveness of their economies and, consequently, their overall economic strength is to actively participate in economic cooperation, as evidenced by the rapid development of trade and economic ties between the European Union and the North American Free Trade Area. This article aims to study the difficulties and countermeasures of East Asian regional economic cooperation in the context of current economic globalization and regional economic integration. According to this study, there are three key reasons why regional economic cooperation among Southeast Asian countries is problematic: political factors in East Asian countries, economic factors in East Asian countries, and social and cultural factors in East Asian countries. Various measures have been suggested to address the current challenges. These include fostering East Asian regional cooperation around ASEAN, expediting economic recovery through trade and economic cooperation, and fortifying cultural exchanges and cooperation to further the development of East Asian regional economic cooperation.

Indonesian Strategic Leadership 5.0 Amidst Thucydides Trap (Dynamic System Approach)

The Indo-Pacific region is experiencing quite sharp conflicts. The power rivalry between these two countries also dragged Indonesia into Thucydides' trap because they joined an alliance with the aim of regional cooperation. This research aims to analyze the tendencies and projections of various aspects of the US vs China towards Indonesia in determining strategic leadership decisions 5.0. The method used is a dynamic system using 2018 time series data and projections up to 2050. The variables used by the Loewy Institute are Economic Relations, Defense Network, Diplomatic Influence, Cultural Influence, Economic Capability, Military Capability, Resilience, and Future Resources. The research results show that the model and tendencies of the US vs China rivalry are influenced by several factors. From 2018 to 2050, it is known that the US vs China rivalry shows fluctuating conditions. Novelty in this research includes 8 scenarios from (1) economic relations such as enhancing multilateral diplomacy and dialogue, promoting regional economic and security cooperation, (2)Defense Network such as strengthening economic, political, and security relations, (3)Diplomatic Influence such as diplomatic approach and regional cooperation, (4)Cultural Influence utilizing US cultural influence to strengthen diplomacy and international cooperation, (5)Economic Capability such as Indonesia can be an effective mediator between the US and China, (6)Military Capability such as strategic leadership 5.0 relies on diplomacy and coalitions, (7)Resiliance and (8)Future Resources such as effective mediator and promotes bilateral and multilateral cooperation. In conclusion, the US vs China rivalry will experience fluctuating developments.

Impact of China’s financial development on the sustainable development goals of the Belt and Road Initiative participating countries

China’s Belt and Road Initiative (BRI) aims to strengthen regional economic and policy cooperation and achieve the rapid development among the participating countries. While the impact on the financial development of the economic growth and energy environment of BRI participating countries has garnered close attention among scholars, few studies focus on the impact of financial development on the sustainable development goals (SDGs) of the BRI participating countries. To address this gap, we utilized panel regression models to quantitatively assess the impact of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries, and adopted Geographically and Temporally Weighted Regression (GTWR) model to explore the spatial-temporal effects of China’s financial development scale, structure, and efficiency on the SDGs of the BRI participating countries. Our findings indicate that China’s financial development has significantly promoted the SDGs of the BRI participating countries. This study further reveals that the scale and efficiency of China’s financial development have had a more pronounced impact on the SDGs of Asian countries, low- and middle-income countries, and the Land Silk Road participating countries, compared to those of European countries, high-income countries, and the Maritime Silk Road participating countries, respectively. In contrast, the structure of financial development primarily promotes the SDGs of European and high-income BRI participating countries in the land silk belt. The role of China’s financial development in promoting the SDGs of most BRI participating countries has gradually increased over time. This study provides valuable insights for decision-makers in China to facilitate the sustainable development of BRI participating countries and foster a shared community within the BRI framework.

Nexus between foreign direct investment, gross capital formation, financial development and renewable energy consumption: evidence from panel data estimation

This research examines the correlation between foreign direct investment (FDI), gross capital formation (GCF), financial development, and renewable energy consumption (REC). The research utilizes the CS-ARDL and NARDL estimates to identify a strong and statistically significant connection, both in the long-term and short-term, between Foreign Direct Investment (FDI), Gross Capital Formation (GCF), financial development, and Regional Economic Cooperation (REC). More precisely, a 10% alteration in Foreign Direct Investment (FDI) leads to a 1.545% augmentation in Research and Development Expenditure (REC) over an extended period of time, and a 0.735% boost in the immediate term. Likewise, favorable (unfavorable) advancements in foreign direct investment (FDI) hasten (diminish) the pace of economic growth in the long term. The analysis also demonstrates a strong and statistically significant relationship between GCF and REC, highlighting the advantageous impact of domestic capital creation on the integration of clean energy. Moreover, it reveals a favorable correlation between financial development and REC, indicating that the financial incentives enabled by financial development have a crucial impact on encouraging the use of renewable energy. These results are consistent with previous research and have important consequences for the connection between foreign direct investment (FDI), gross capital formation (GCF), financial development, and sustainable energy. Nonetheless, the study highlights the importance of taking into account the nature and caliber of foreign direct investment (FDI) inflows, the influence of fair and sustainable growth in the renewable energy sector on the environment and society, and the possible environmental and social consequences of renewable energy projects fueled by domestic capital expansion. Furthermore, it emphasizes the need of well-rounded policy frameworks and governance mechanisms to guarantee that foreign direct investment (FDI), green climate fund (GCF), and financial development effectively contribute to equitable and sustainable growth in the consumption of renewable energy. The study's findings offer valuable insights on how to effectively use foreign direct investment (FDI), global climate finance (GCF), and financial development to increase the use of renewable energy. However, it also emphasizes the importance of carefully evaluating the wider consequences and related factors in order to develop sustainable strategies for promoting renewable energy consumption.

International legal and economic aspects of joint use of the Paz River hydro-resources by the USSR, Finland and Norway in the 1920–1940s

The article deals with the fact that international legal relations of joint use of hydro resources of border rivers by Soviet Russia, Finland and Norway in 1920–1944 is an understudied topic among domestic and foreign researchers. This is largely due to the fact that the international legal interaction between the countries was contradictory, and the problems of security of border territories caused concern and could not create normal conditions for regional economic cooperation in this area.

Xinjiang on the New Silk Road: Kyrgyzstan's Energy and China's Manufacturing Foreign Trade

Located in the northwest of China, Xinjiang plays a key role as an important node of the New Silk Road. The purpose of this study is to explore the influence of Xinjiang's geographical position, economic development, infrastructure construction, cultural exchange and energy resources in this initiative. First of all, Xinjiang's geographical advantages make it a key link between China and Central Asia, Europe and other places, providing a convenient channel for promoting international trade and logistics. Secondly, large-scale infrastructure investment, such as high-speed railway, highway and port construction, has improved Xinjiang's trade and logistics capabilities, and also brought economic growth and employment opportunities. In addition, Xinjiang's multi-culture and ethnic characteristics promote cross-border cultural exchanges and create opportunities for understanding and cooperation between different cultures. Finally, Xinjiang's abundant energy resources are of strategic significance to China's energy economy and help to ensure the country's energy security. This study emphasizes the key position of Xinjiang in the Silk Road, and its positive role in regional economic integration and cooperation, which provides useful insights for further discussion on this issue.

Process of effective management of the Eurasian transport system on the terms of integration

Transformation of international relations caused by geopolitical processes significantly affects the development trends in foreign trade activities, global restructuring of goods movement channels, changes in the conditions of currency and customs regulation, lending, and investment. Ensuring stability, security and prosperity in the Eurasian region meets interests of many states, primarily Russia and China, as well as their closest partners. The implementation of the project on construction and modernization of the Eurasian transport system will not only neutralize risks in the context of international challenges, but will also contribute to the new ecosystem creation with great potential in the new realities. Harmonization and joint coordination of actions in accordance with the integration process progressive implementation to create a regional ecosystem in the international format will contribute to the creation of mutually beneficial partnership, development of sustainable long-term ties for implementing trade, scientific, production, and logistics projects. Conceptual provisions of the integration process to create a regional ecosystem will help to create sustainable conditions for economic development and increase corporate, sectoral and regional policies effectiveness. Building an international architecture of strategic partnership in the format of regional and sectoral interactions is a real and potentially successful approach to increase regional economic cooperation efficiency. The relevance of the study is also confirmed by the provisions of the project on transport and logistics and economic cooperation development until 2030 in priority strategic directions, primarily in financial, industrial-technological and transport, and logistics areas. The scientific novelty of the study lies in a comprehensive and integrated study of the role and regional cooperation potential and economic processes integration in China and Russia in the new ecosystem of the Greater Eurasian Partnership, as well as development of mutually beneficial cooperation between the states of the region in economic, political and humanitarian spheres. The scientific novelty of the study lies in the justification of the construction and implementation of a joint transport and logistics project on the terms of integration between China and Russia, which will predetermine the creation of the Greater Eurasian Partnership new ecosystem named with long-term mutually beneficial multilateral cooperation at the international level in the economic, political, and humanitarian fields.

The Impact of the Abraham Accords on Geopolitical Dynamics of the Middle East

The Abraham Accords, signed in 2020, have emerged as a watershed moment in the geopolitical landscape of the Middle East, marking a significant shift in regional dynamics. This scientific article provides an in-depth analysis of the Accords’ impact on the Middle East, exploring the multifaceted consequences of this historic realignment. Focusing on the normalization of relations between Israel and several Arab nations, including the United Arab Emirates, Bahrain, Sudan, and Morocco, the study examines the broader geopolitical implications, with particular attention to the redefinition of regional alliances, economic and technological cooperation, and the nuanced effects on the Israeli-Palestinian conflict. The article delves into the strategic motivations behind the Accords and their influence on the traditional Arab-Israeli relations, underscoring a paradigm shift from longstanding animosity to a newfound cooperation based on shared interests, particularly in security and economic spheres. It evaluates the economic opportunities catalyzed by the Accords, such as increased trade and joint technological ventures, which promise to foster a new era of prosperity and interdependence in the region. Furthermore, the analysis addresses the complex implications for the Israeli-Palestinian peace process, assessing the potential for the Accords to reshape the future trajectory of this long-standing conflict. While acknowledging the initial concerns of sidelining the Palestinian issue, the article explores the possibility of these agreements creating new platforms for dialogue and conflict resolution. The article also contextualizes the Accords within the broader regional and international geopolitical framework, analyzing how this development reflects the changing priorities and strategies of Middle Eastern states in response to regional threats, global economic trends, and the evolving role of external powers. The challenges and prospects for the future of the Abraham Accords are critically examined, considering the sustainability of these agreements amidst the dynamic and often volatile regional environment. In conclusion, this comprehensive study posits that the Abraham Accords signify a momentous shift in Middle Eastern geopolitics, with potential ramifications that extend beyond the immediate signatories. The Accords herald a new chapter in the region's history, where diplomatic engagement and economic collaboration may pave the way for a more stable and integrated Middle East, albeit with remaining challenges and uncertainties.

Main drivers of regional value chains in CAFTA: Does trade facilitation matter?

In the last decades, economic globalisation and the progress of ICT have promoted the international division of labour and optimisation of the global value chain. Moreover, improvements in incentives such as lower tariffs and more efficient border crossings have boosted international trade. Under this background, regional and sub-regional economic cooperation organizations, such as free trade area (FTA), have been developing rapidly and attracting many academic attentions. As the fastest growing FTA in the world, CAFTA is now the largest FTA in developing countries. This study focuses on the value-added network of various industries in the trade process inside CAFTA, and tries to explore the impact of trade facilitation on the DVA trade network of CAFTA. The results show that in the trade network of CAFTA, the proportion of added value of domestic trade in total exports keeps increasing, and the returned added value (RDV) increases significantly. Singapore, Vietnam, and Thailand hold relatively high positions in the production network, while China has a relatively low position. On the other hand, China and Thailand become the main beneficiaries after the establishment of CAFTA, while Singapore and Malaysia play a lesser role in trading networks. The results also show that trade facilitation has a significant positive effect on the DVA-INTrex and RDV trade networks, indicating that trade facilitation can significantly increase the domestic indirect value added and returned value added in the trade process. Moreover, the business environment (bus) is the most important factor, with efficiency and transparency of border administration (cus), availability, and use of ICTs (ict) contributing to the improvement.

The Impact of Regional Economic Cooperation on States from a Global Perspective

With the deepening of economic globalization and the constant changes in the international political pattern, regional economic cooperation has become an important means for major countries to seek economic development, maintain economic stability, and protect the domestic market, but at the same time, it also has some impact on the market of some weaker countries. Despite the controversy, regional economic cooperation has become one of the mainstream trends of world economic development with a strong momentum. Based on the relationship between the local and the whole, this study explores the positive and negative impacts of regional economic cooperation while looking forward to the prospects of world economic development, uses the literature survey method to outline the current situation and development framework of regional economic cooperation, and explores how major countries use regional economic cooperation to seek their own interests. At the same time, it can also be found that the weak countries can better integrate into regional economic cooperation and development while maintaining the domestic market. The study found that regional economic cooperation has become an effective means for most countries to boost their economies and maintain stability, but the worlds powerful countries have more benefits than other countries, and big countries should have a long-term vision while other countries should insist on economic independence.

Explaining trade policy effects for the Central Asia Regional Economic Cooperation countries

Explaining trade policy effects for the Central Asia Regional Economic Cooperation countries

Early career research paper: Understanding trade efficiency in Central Asia Regional Economic Cooperation countries and its determinants

Early career research paper: Understanding trade efficiency in Central Asia Regional Economic Cooperation countries and its determinants

Demystifying the association between economic development, transportation, tourism, renewable energy, and ecological footprint in Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation region during globalization mode.

The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) economies have yet to meaningfully contribute to accomplishing Sustainable Development Goals (SDG 7) affordable and clean energy, (SDG 8) decent work and economic growth, and (SDG 13) climate action. Dealing with this issue might require a shift or alteration of policy framework that is the major theme of this study. Consequently, this present research inspects the influence of economic growth, transportation, tourism sector development, and renewable energy on ecological footprint using panel time series from 1990 and 2019 for the BIMSTEC region. To evaluate this dynamic nexus between the mentioned environmental pollution drivers of ecological footprint, this study employed the augumented mean group (AMG) and common correlated effect mean group (CCEMG) regression estimators after detection of cross-sectional dependency. The empirical outcomes denote that economic growth and transportation sector of BIMSTEC countries increase the levels of ecological footprint. Conversely, tourism sector development, globalization, and renewable energy protect the ecological excellence in the region. Moreover, it is observed that a unidirectional causality exists from economic growth to ecological footprint, ecological footprint to transportation, tourism to ecological footprint, and globalization to ecological footprint, while bidirectional causality exists between renewable energy and ecological footprint. By observing the positive function of tourism, green energy, and globalization on sustainable environment progress, central authorities are capable to redesign policies concerning supportable efficient technologies and regulate globalization towards green programs and agenda to reduce global warming.

Participation of Central Asian Countries in Central Asian Regional Economic Cooperation: Transport, Energy

The relevance of the study is due to the fact that the participation of the Central Asian countries in the Central Asia Regional Economic Cooperation Program in the modern world has the potential to play an important role in the foundation of regional projects in logistics and energy. The purpose of the work is to provide recommendations on how to eliminate errors in the process of improving the projects of Central Asian regional economic cooperation and to analyze this mechanism in logistics and energy. Among the methods used should be noted the analytical method, the classification method, the functional method, the statistical method, and the synthesis method. It is important to analyze the functioning of this mechanism in order to assess its effectiveness and develop work in the logistics and energy sectors. The issues of evaluation of cooperation are considered, indicating problems and prospects, the expediency of participation, their limitations in cooperation, and the impact of limitations on the result. Recommendations re proposed that would contribute to the effective regulation of the issue. It is determined that the improvement of Central Asian regional economic cooperation projects plays an important role in creating conditions for intraregional and interregional trade and contributes to the development of logistics. The practical value lies in applying the findings to rectify organizational errors and enhance Central Asian regional economic cooperation projects related to logistics and energy, considering multiple factors. Thus, recommendations for improved Central Asia Regional Economic Cooperation functioning are provided.

Japan-Bangladesh geo-economic cooperation: the lens of Free and Open Indo-Pacific (FOIP) for peace, stability and prosperity

The ongoing transfer of economic power from the West to the East created a shift in economic dominance and the global power balance, allowing emerging nations to enhance their positions. Several countries favor a Free and Open Indo-Pacific initiative to preserve the status quo. Because it maintains an essential seaport in the Indian Ocean, Bangladesh is recognized as a maritime nation. Bangladesh’s geographic advantage allows it to serve as a node and hub in regional and inter-regional trade and investment. This potential stems from the global movement of economic power toward the Indo-Pacific Region. This study assesses whether Japan’s FOIP can provide peace and stability to Bangladesh while grasping geopolitical sustainability. Furthermore, this paper argues FOIP’s regional economic cooperation is managed effectively, and Japanese investment might benefit Bangladesh’s economy for sustainable development. This qualitative study uses primary and secondary data to evaluate the feasibility of Japanese geopolitical projects in Bangladesh for peace, stability, and prosperity. This study provides a new paradigm in analyzing the strategic geopolitical implications of FOIP in the Bay of Bengal area, highlighting the repercussions of geopolitical transformation into a strategic focal point. This study depicts the equiangular developmental diplomacy’s balancing instrument and standards for joint stability and growth in the Bay of Bengal area.

Retracted: Development Model of China’s Regional Economic Cooperation Based on Network Analysis and Multimedia Data Visualization

Retracted: Development Model of China’s Regional Economic Cooperation Based on Network Analysis and Multimedia Data Visualization

Regional economic integration in the Eurasian Economic Union: theory, lessons from the past and new opportunities

The article shows that the processes of world development initiate changes in various areas of international cooperation both at the global and regional levels. This is also happening within the framework of regional economic integration cooperation. The author proves that the modern transformation of integration processes has an impact on the development of the Eurasian Economic Union (EAEU). This process requires a comprehensive theoretical analysis and systematization. The purpose of the article is to analyze and evaluate integration processes in the EAEU. The scientific novelty of the article is the systematization of new phenomena and characteristics in regional economic integration in the world in the 21st century. The author also tries to formulate new tasks for the EAEU in building a progressive integration process. Another point of view, which the author substantiates in the article, is that the foundation for the development of integration in the EAEU should be taking into account ongoing global changes, previous experience of economic integration within the framework of the Council for Mutual Economic Assistance (Comecon) and the development of industrial cooperation between the EAEU countries and non-regional partners both in industry, and in agriculture, that means, in the real sectors of the economy. The author concludes that it is production cooperation in the real sectors of the economy in the EAEU that will ensure the necessary stability of both national economies and the progressive development of the integration process in the current conditions of the world economic process increased turbulence and the global system transformation. And since the EAEU faces such large-scale and vital tasks, then, according to the author, a reassessment and some redirection of integration efforts are required. It is on this basis that an adequate formation of new principles of financial cooperation in the EAEU is possible.

Ways to promote investments in sustainable energy utilities in the central Asian regional economic cooperation program region

The central purpose of this study is to evaluate the green energy investment pattern in 10 CAREC (Central Asian Regional Economic Cooperation Program region) economies from 2010 to 2021. To this end, the interactive fixed effect (IFE) estimator is employed. The empirical outputs reveal that green energy investment is affected by social, economic, and financial variables. The openness of financial markets has a positive and significant coefficient. The CAREC economies are recommended to develop green financing markets, poverty alleviation, and attract the private sector to sustainable power generation.

Research on the Industrial Transfer from the Yangtze River Delta to Linyi City based on the Industrial Gradient Coefficient

The Yangtze River Delta region, represented by Shanghai, Zhejiang and Jiangsu, has grown as one of the most developed regions in China based on the acceptance of international industrial transfer. However, along with the rising factor costs, increasing environmental pressure and resource constraints, it has become a general trend to upgrade industrial structure, give priority to intensive, high technology and high value-added industries, some labor-intensive and capital-intensive industries is moved to other regions in the country. As the southern gate of Shandong Province, Linyi City is close to the Yangtze River Delta, with a common history, and complementary resources, and is an important hub connecting the north and south economies. It should take full advantage of its location, natural resources and labor resources to actively undertake the industrial transfer of the Yangtze River Delta and participate in the regional economic cooperation and development of the Yangtze River Delta. The difference in the development level between the transferring and taking over places is a prerequisite for industrial transfer, which can be measured by the industrial gradient coefficient, which shows the different levels of industrial gradients to determine the transferring industries in the Yangtze River Delta region; in addition, the relative industrial gradient coefficient is introduced to determine the industries Linyi can take over.