Southeast Asian Nations Free Trade Research Articles

The Effect of the ASEAN FTA on Intra-Regional Trade in Lao PDR

Purpose - This study aims to estimate the effects of the Association of South-East Asian Nations Free Trade Area (AFTA) on international trade in Lao People’s Democratic Republic (PDR) Design/Methodology/Approach - This study empirically analyzes the effects of AFTA on Lao PDR’s intra-regional trade with ASEAN countries using a gravity model by employing panel data from ten ASEAN countries from 1990 to 2017.
 Findings - This paper finds that joining AFTA positively affects aggregate trade volume and exports of Lao PDR. However, joining AFTA does not positively impact Lao PDR’s imports.
 Research Implications - With a very limited number of studies on the effect of AFTA on Lao PDR, most previous studies examine the effect on Lao PDR using a subset of ASEAN countries. This paper contributes to the literature by being the first to empirically analyze the effect of AFTA on intra-regional trade in Lao PDR with all ten ASEAN member countries. The findings of the study suggest that further extending FTA networks with other countries will promote Lao PDR’s trade and its access to the international market.

Effects of AFTA on Poverty : Evidence from Laos

The Association of South-East Asian Nations Free Trade Agreement plays an important role in regional economic development. However, Association of South-East Asian Nations Free Trade Agreement’s contribution to poverty reduction remains unclear. Therefore, the main objective of this study is to assess the impact of Association of South-East Asian Nations Free Trade Agreement on poverty using Laos as a case study. To do so, we apply a Computable General Equilibrium model, microsimulation, and a logit model. Laos benefits from Association of South-East Asian Nations Free Trade Agreement but has also experienced an increase in its trade deficit. The primary benefits from Association of South-East Asian Nations Free Trade Agreement derive from the improvement in trade facilitation and a significant increase in Foreign Direct Investment. Association of South-East Asian Nations Free Trade Agreement may also reduce income inequality at the national level. However, Association of South-East Asian Nations Free Trade Agreement could cause disparities between the so-called winners and losers. The beneficiaries of Association of South-East Asian Nations Free Trade Agreement might be limited to households that have access to land, irrigation, road, and electricity.

Regional Trade Integration by Environmental Goods

With the emphasis on the effects of regional trade integration and production fragmentation, this paper investigates the determinants of trade networks focusing on environmental goods, according to the Asia-Pacific Economic Cooperation classification by each of the commodity groups of HS84, HS85, and HS90, which include important commodities having the purpose of protecting the environments. The gravity analysis with consideration of trade in parts and components, for which newly industrialized Asian economies have advantage, and regional dummies verifies not only that trade in environmental goods is expanding more rapidly but also production fragmentation depending on trade in parts and components is a key factor to expand the overall trade in environmental goods among the APEC countries and members of the Japan-Association of Southeast Asian Nations Free Trade Agreements. These results suggest that the commitment by Asia-Pacific Economic Cooperation to liberalize trade of environmental goods is crucial for regional economic integration through promoting international production fragmentation and also for environmental protection by expanding world demand for environmental goods through activating regional trade.

The 2030 Architecture of Association of Southeast Asian Nations Free Trade Agreements

This paper investigates and analyzes the present status, potential, and prospects of Association of Southeast Asian Nations (ASEAN) free trade agreements (FTAs). The move towards the ASEAN Economic Community by 2015 and the attempts to broaden FTAs in East Asia present major challenges to ASEAN. Ultimately, it is desirable for ASEAN to draw a clear picture of how the architecture of ASEAN FTAs in 2030 can be given shape.

Analysis of China’s Import from & Direct Investment in ASEAN—Based on Gravity Models

China and Southeast Asian nations free trade area was formally established on January 1, 2010. By the end of year 2011, China’s foreign exchange reserves exceeded 3200 billion US dollars. Trade gravity model originates from the law of universal gravitation. Domestic researchers have made empirical studies using trade gravity model of trade between China and Southeast Asian nations. There are also studies of foreign direct investment or Chinese tourist arrivals in Vietnam, using gravity model. However, neither tariff and foreign exchange reserves are taken into consideration in studying China and Southeast Asian nations free trade area, nor gravity model is used in analyzing China’s direct investment and tourist arrivals in Southeast Asian nations. Using econometrics software “Eviews 5.0” and based on a panel data from year 2000 up to 2008, this paper constructs a gravity model, the independent variables of which are gross domestic product per capita of CAFTA countries, foreign exchange reserves of CAFTA countries, squares of southeast Asian nations, and distance between China and southeast Asian nations. And quantitative relationship is made between independent variables and China’s direct investment in Southeast Asian nations, import from Southeast Asian nations, as well as arrivals of Chinese visitors in Southeast Asian nations.

Comment on “Indonesia After the Asian Crisis”

Comment on “Indonesia After the Asian Crisis”

The organisation of the Department of Veterinary Services in Malaysia

The Department of Veterinary Services (DVS) in Malaysia was established in 1888 as an agency to control exotic and domestic animal diseases. Over the years, the structure and functions of the organisation have evolved to meet the growing demand for veterinary services. The responsibilities of the Veterinary Services are enshrined in the Constitution of Malaysia. The current organisation of the DVS is structured to achieve the following objectives:---to prevent, control and eradicate animal and zoonotic diseases--to facilitate the growth and development of a strong animal industry--to ensure that animal products for human consumption are wholesome, clean, safe and suitable to be consumed--to facilitate the growth and development of the animal feed industry--to ensure the welfare and well-being of all animals. To meet these objectives the DVS has nine different divisions, as follows: Planning and Evaluation, Epidemiology and Veterinary Medicine, Veterinary Public Health, Research and Development, Industry Development, Production and Development of Genetic Resources, Human Resource Development (HRD), Enforcement, and Administration. The development of the animal industry is managed through national development policies, including the Third National Agriculture Policy. The basis for current programmes for disease control and animal industry development is the Eighth Development Plan (2001-2005). Over the period of this Plan, Malaysia will address the need for sanitary and phytosanitary measures by developing specific programmes covering all fields of the animal industry. This is just one way in which Malaysia is meeting the challenges of the increased liberalisation of trade created by the World Trade Organization and the Association of Southeast Asian Nations Free Trade Area. The development of the industry is focused on the major commodities, namely, beef, mutton, poultry meat, eggs, pork and milk. Other commodities receive support if it is considered economically viable. All support services are being strengthened, particularly the HRD division. The organisation and functions of the DVS are constantly being reviewed in accordance with changes in the animal industry and the nature of the services in demand.