3 results
3 - The Challenge of Economic Integration for Transitional Economies of Southeast Asia
-
- By Jose L. Tongzon, Inha University, South Korea, Habibullah Khan, Universitas 21 Global, Singapore
- Edited by Denis Wei-Yen Hew
-
- Book:
- Brick by Brick
- Published by:
- ISEAS–Yusof Ishak Institute
- Published online:
- 21 October 2015
- Print publication:
- 14 November 2007, pp 36-58
-
- Chapter
- Export citation
-
Summary
Introduction
One of the difficult challenges facing Cambodia, Lao PDR, Myanmar, and Vietnam (usually referred to as CLMV) as new members of ASEAN is how to implement their commitments and obligations as signatories of the ASEAN Free Trade Area (AFTA). There is a real concern that, as they reduce their tariffs in accordance with the AFTA guidelines, they will suffer significant revenue losses with adverse economic and social implications. Revenues from import tariffs in these countries constitute a sizeable proportion of their government revenues (for example, the share of import tariffs in total revenue among CLMV countries has ranged between 7 per cent and 25 per cent).
In light of this concern, this study aims to investigate if there is any empirical basis of this concern and to draw out some policy implications. Except for the studies made by Fukase and Martin (1999a–d) for the World Bank and by Lao-Araya (2002), no in-depth study has yet been undertaken to assess the tariff revenue implications as a result of their participation in AFTA. Fukase and Martin (1999a–d) used a static computable general equilibrium model (CGE) based on a full market equilibrium assumption. Lao-Araya (2002) used a partial equilibrium approach but her estimates due to the lack of disaggregated data were highly aggregative and did not take into account the growth of imports. This paper uses a partial equilibrium approach and takes into account the growth of imports. Its estimates are also derived from disaggregated data which have become available.
The rest of the paper is organized as follows: section 2 provides a brief review of the major aspects of AFTA and the trade liberalization commitments made by CLMV countries as new members of ASEAN; section 3 discusses the revenue structure in CLMV countries; section 4 briefly presents the theoretical basis and the methodology used for this study; section 5 discusses the revenue impact; section 6 suggests a set of policy recommendations followed by some concluding remarks in section 7.
6 - Trade and Investment Overview: An ASEAN Perspective
- from II - New Zealand-ASEAN Economic Relations: Cooperation and Challenges
-
- By Jose L. Tongzon, National University of Singapore
-
- Book:
- Southeast Asia - New Zealand Dialogue
- Published by:
- ISEAS–Yusof Ishak Institute
- Published online:
- 21 October 2015
- Print publication:
- 08 March 2007, pp 22-26
-
- Chapter
- Export citation
-
Summary
Dr Jose L. Tongzon highlighted that his main objective was to look at the relationship between ASEAN and New Zealand from the economic perspective. He commenced his presentation by stating the trade relationship between New Zealand and ASEAN — there had been inconsistent growth in the trade relationship in the past ten years. The second part of his presentation dealt with this issue, the slow growth and obstacles to trade and investment between these two economies.
ASEAN-New Zealand trade relations have seen an inconsistent growth pattern from 1993 to 2004. Trade relations were significant since 1993 but stalled in 1997, when the Asian financial crisis took place. It has been inconsistent in the post Asian crisis period. For instance, exports to New Zealand fell during the Asian financial crisis, and also in 2001 and 2004. In contrast, ASEAN imports from New Zealand have grown significantly in 2003 and 2004. Another notable point is that exports from New Zealand were significantly higher than ASEAN exports to New Zealand. The bilateral trade remains insignificant, accounting for only 1 per cent of total ASEAN imports and exports.
Dr Tongzon explained that trade relations between the two countries were greatly affected by the following factors: firstly, the increase or change in commodity prices, especially from New Zealand; secondly, world demand had a impact on trade relations; and lastly, the appreciation of the New Zealand dollar. As the latter appreciates, there is an increase in trade between the two regions.
Different products in ASEAN and New Zealand dominate the composition of trade between the two regions. The composition of New Zealand exports to ASEAN is dominated by dairy products, fruits, vegetables, meat and food products. There is potential for export between New Zealand and ASEAN as a population boom is expected in the ASEAN countries. Additionally, as more people are becoming health conscious and there is insufficient domestic supply to keep up with the increase in demand, there is certainly scope for New Zealand exports in ASEAN.
10 - ASEAN-China Investment Cooperation: Status and Prospects
-
- By Jose L. Tongzon, University of Tasmania
-
- Book:
- ASEAN-China Economic Relations
- Published by:
- ISEAS–Yusof Ishak Institute
- Published online:
- 21 October 2015
- Print publication:
- 22 November 2006, pp 203-225
-
- Chapter
- Export citation
-
Summary
INTRODUCTION
There are certainly some risks and costs associated with the current initiatives to bring about greater trade liberalization between China and the ASEAN countries within the framework of the WTO and regionalism. But the high level of commitment demonstrated by both parties for the establishment of a free trade area indicates their sense of optimism that the enormous benefits that can be derived from free trade will outweigh the short-term costs.
It is argued that China and the ASEAN countries can maximize the benefits of trade liberalization by strengthening and enhancing their investment cooperation. Both countries have huge markets (existing and potential) which offer each other enormous investment opportunities.
Investment cooperation can take a variety of forms but may be classified into two types: market sharing and resource pooling. Market sharing takes the form of providing access to each other's investment opportunities by relaxing the restrictions and rules on and creating an environment conducive for foreign investments. Resource pooling could take the form of joint ventures and other types of partnerships (such as joint marketing and promotion) using each other's comparative advantages and complementarities.
In this light, this chapter will attempt to identify the specific areas where there is great potential for investment cooperation between these countries and the obstacles that need to be addressed in order to bring this potential into reality.
The first part of the chapter will first outline the trends and nature of the investment relationship between these countries. The second section will identify the specific areas where there is potential for mutually beneficial investment cooperation between these countries and the third section discusses the major obstacles and constraints that have come in the way of achieving a significant ASEAN-China investment cooperation.
ASEAN-CHINA BILATERAL INVESTMENT
Before exploring and identifying areas for possible investment cooperation, it is useful to first briefly outline the trends and nature of the investment relationship between China and the ASEAN countries.