The Economic Rise of China: Challenges and Opportunities for ASEAN

Chia, Siow Yue; Sussangkarn, Chalongphob

doi:10.1111/j.1748-3131.2006.00011.x

Cited by 15 publications

(10 citation statements)

References 2 publications

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“…Wong and Chan (2003) thought that, the China‐ASEAN Free Trade Agreement had stimulated FDI inflows from China to ASEAN countries and predicted that in the near future, China would be following the Western countries, Japan, the four Asian tigers to bring the ASEAN countries a fourth surge of FDI inflows. ASEAN countries came to realize that China's investment had brought more opportunities, thus they had taken more measures to attract investments from China (Chia and Sussangkarn, 2006).…”

Section: Literature Reviewmentioning

confidence: 99%

Technology spillovers of FDI in ASEAN sourcing from local and abroad

Yonghong

Tan²

2012

China Finance Review International

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PurposeThis paper aims to empirically analyze the role of FDI technology spillover effects in the development patterns of ASEAN.Design/methodology/approachThe paper is based on the analytical framework of Borensztein by utilizing time‐series data between 1990 and 2008 in ASEAN countries. Models (1)‐(3) estimate parameters by adopting OLS, and Model (4) uses dummy saturation methods in PC Give, Oxmetrics 6 to determine significant dummy variables automatically. By judging the overall significance of each variable and the model, Model (4) has a substantial improvement, and is finally selected to judge the education threshold of each country.FindingsThe empirical results render support to the existence of technology spillovers in ASEAN. The regression results also suggest that it is necessary to combine FDI technology spillovers with domestic human capital, that is, in the process of promoting economic development. China's FDI in ASEAN requires lower education threshold, and also has positive effect on economy growth in six countries of ASEAN.Research limitations/implicationsAs this paper investigates data from many countries, there are some unavoidable differences in the statistical sources and the calibre of data. It is inevitable to have some inaccuracies. This paper tries to process the data into similar calibres and units.Practical implicationsThe paper examined whether total FDI, intra‐ASEAN FDI and FDI from China have played exactly the same role in ASEAN countries. Accordingly, the paper put forward suggestions after combining the characteristics of FDI from China with different local situations of ASEAN host countries.Originality/valueThe paper, respectively, takes data of total FDI, intra‐ASEAN FDI, FDI from China into the FDI variable in the model, and get three sets of results for each country. The year dummy variable is newly added to the original framework of Borensztein in order to test whether the dependent variable can be affected to a large extent by potential great changes in macro‐economies.

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Section: Literature Reviewmentioning

confidence: 99%

Technology spillovers of FDI in ASEAN sourcing from local and abroad

Yonghong

Tan²

2012

China Finance Review International

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“…''[T]he ASEAN-China agreement cannot be viewed purely from the economic benefits that may result from the agreement'', concluded two ASEAN experts, ''but also from geopolitical powerplay perspectives, particular between China and Japan and even between China and the USA'' (Chia and Sussangkarn 2006). With the ASEAN plus one framework and, to a lesser degree, the ECFA with Taiwan, the PRC might intend to establish ''a production network with China at the centre'' (Men 2007), or even an East Asian trade group with the RMB serving as a hard currency in the long run.…”

Section: Asean-favored Balanced Tripartite Integrationmentioning

confidence: 99%

Regionalism in Competition: EU Experience and its Theoretical Implications for Asian Integration

2012

J Glob Policy Gov

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In parallel of rise of Asia and particularly the PRC, different approaches to Asian regionalism have emerged on international scene, which, according to the author's detailed analysis, can be divided into four approaches. They were respectively advocated by the US, Japan, the PRC and ASEAN and have been competing with each other in their quest for leadership in Asian integration. In order to measure their potential development and impact on Asian regionalism, the author took reference of the similar competition in the European integration between 1950 and 1974 and its theoretical explanation. The author then formulated a framework of analysis composed of four indicators in the region: power structure, cooperation of transnational elite, potential spillover of the original integrated sector and the institutional building. Having evaluated the four approaches to Asian regionalism with help of these indicators, the author concluded that the US-led Trans-Pacific regionalism still dominates Asian integration for the US is far more powerful than any other individual powers or any coalitions in the region. It could easily mobilize those pro-US elite throughout Asia. The pathfinder and later TPP in APEC could serve as an integrated sector potentially producing spillover in related fields. However, American approach's Achilles' Heel is its failure to build up strong institutions owing to Washington's passive and reluctant attitude towards Asian regionalism. If Washington refuses to adapt itself to the fast evolving Asian regionalism, it could leave place to the PRC or even ASEAN in a long run as China's economy is fast developing and its political influence is rapidly rising and ASEAN is accelerating construction of its own communities.

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“…25 Indeed, this author observed that Chinese OFDI has triggered a change in the mindset of top politicians with regard to regionalization, e.g., in Malaysia. China is viewed no longer as a threat, but rather as offering promising market opportunities, and ASEAN countries are eager to pull in Chinese FDI (Chia and Sussangkarn 2006). At the same time, the Chinese government actively aims to increase cooperation and investment in ASEAN, especially in sectors such as the biotech industry and electronic information.…”

Section: Asean and China: Can Do Without Formal Integration?mentioning

confidence: 99%

“…At the same time, the Chinese government actively aims to increase cooperation and investment in ASEAN, especially in sectors such as the biotech industry and electronic information. In this way, China seeks access to advanced technologies that are available in ASEAN countries (Chia and Sussangkarn 2006;Ping 2007). Table 1 and Figure 4).…”

Section: Asean and China: Can Do Without Formal Integration?mentioning

confidence: 99%

Regional Integration and FDI in Emerging Markets

Kubny

Mölders²,

Nunnenkamp

2011

Regional Integration, Economic Development and Global Governance

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Regional integration is often considered a means to improve member countries' attractiveness to foreign direct investment (FDI). But regional integration agreements (RIAs) as well as FDI are too diverse to allow for generalized verdicts. Our case studies on Mercosur in Latin America, ASEAN and SAARC in Asia, and SADC in sub-Saharan Africa caution against high expectations in several respects. First, country-specific factors were often more important as a stimulus to FDI than regional integration per se. Second, member countries are unlikely to equally share RIA-induced FDI inflows, even though the larger and richer members are not necessarily the winners taking all. Third, the regional heavyweights Brazil, China, India, and the Rep. of South Africa have played a minor role so far in fostering effective regional integration through outward FDI. Terms of use: Documents in EconStor may

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The Economic Rise of China: Challenges and Opportunities for ASEAN

Cited by 15 publications

References 2 publications

Technology spillovers of FDI in ASEAN sourcing from local and abroad

Technology spillovers of FDI in ASEAN sourcing from local and abroad

Regionalism in Competition: EU Experience and its Theoretical Implications for Asian Integration

Regional Integration and FDI in Emerging Markets

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