1,721,024 research outputs found
Location Choice of Multinational Enterprises in China: Comparison between Japan and Taiwan
Full text linkThis paper explores the location choice of MNEs in China, shedding special light on the role of agglomeration of same-nationality firms. In particular, we examine how its role differs according to investors’ productivity. Furthermore, we compare the location choice of Japanese and Taiwanese MNEs in China, because Taiwanese MNEs are expected to experience less uncertainty in investing in China than Japanese MNEs, due to Taiwan’s linguistic and cultural advantages in China. We find that, less productive Japanese firms prefer to locate close to larger same-nationality agglomerations, there are no differences in location according to firms’ productivity in the case of Taiwanese firms.
Who Uses Free Trade Agreements?
Full text linkIt is noted that utilization of ASEAN Free Trade Agreements (FTAs) is low by international standards. In order to clarify the reasons for such low utilization, this paper investigates what kinds of Japanese affiliates in ASEAN are more likely to use FTAs in their exporting, by employing unique affiliate-level data. Our findings are as follows. First, the larger the affiliate is, or the more diversified the origins of its procurements, the more likely it is to utilize an FTA scheme in its exporting. Second, affiliates that export actively to countries with higher general tariffs are more likely to use FTAs. Third, there are clear differences in FTA utilization depending affiliates, locations and sectors.
Gains from Fragmentation at the Firm Level: Evidence from Japanese Multinationals in East Asia
Full text linkThe unprecedented development of production networks in East Asia has been investigated, both theoretically and empirically, employing the conceptual framework of fragmentation theory and its extensions. However, the benefits of production fragmentation at the firm level, particularly benefits deriving from different location advantages, have never been directly measured empirically. This paper presents the very first attempt, to the authors' knowledge, to empirically capture the benefits of fragmentation. Specifically, using Japanese firm-level data, we find that the larger the gap in the capital-labor ratios between fragmenting firms' home and overseas activities, the more greatly their cost efficiency improves.Firm heterogeneity; multinational enterprises; fragmentation; factor intensity; micro data.
Gravity chains: estimating bilateral trade flows when parts and components trade is important
Full text linkTrade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalisation of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of value added flows. This fact has important implications for the estimation of the gravity equation. We present empirical evidence that the standard gravity equation performs poorly by some measures when it is applied to bilateral flows where parts and components trade is important. We also provide a simple theoretical foundation for a modified gravity equation that is suited to explaining trade where international supply chains are important. JEL Classification: F01, F10bilateral flows, gravity, parts and components trade, Value chains
Gravity Chains: Estimating Bilateral Trade Flows When Parts And Components Trade Is Important
Full text linkTrade is measured on a gross sales basis while GDP is measured on a net sales basis, i.e. value added. The rapid internationalisation of production in the last two decades has meant that gross trade flows are increasingly unrepresentative of the value added flows. This fact has important implications for the estimation of the gravity equation. We present empirical evidence that the standard gravity equation performs poorly by some measures when it is applied to bilateral flows where parts and components trade is important. We also provide a simple theoretical foundation for a modified gravity equation that is suited to explaining trade where international supply chains are important.
Harmonizing Biodiesel Fuel Standards in East Asia: Current Status, Challenges and Way Forward
Full text linkAbstract: This paper discusses the development of and policy towards biodiesel fuel (BDF) in the East Asia Summit (EAS) Region (hereafter East Asia), with a focus on activities related to harmonizing BDF standards. It finds that the EAS countries have actively promoted the development of BDF for a variety of reasons. To minimize problems with engines arising from the use of BDF, most EAS countries have established their national BDF standards. However, these diverse standards cause barriers for BDF trade and act against the regional interest in maximizing benefits from BDF production and utilization. Therefore, the EAS policy makers decided to harmonize BDF standards, and a regional benchmark standard has been published. Through a comparative review of existing national standards against the benchmark, it finds that the harmonization is beneficial economically and environmentally, and is technically feasible but practically stalled due to the lack of political determination. Therefore, among a few policy implications, the key message to deliver is a call for political determination to implement the harmonization in the EAS region. Since harmonization of BDF standards has been tried in other regions, the findings of this paper may supplement the literature, enhance understanding of the EAS case, and provide lessons and implications that may be helpful in advancing similar harmonization elsewhere.
Monitoring Trade Costs in Southeast Asia
Full text linkThis paper develops an Index of Trade Costs for ASEAN Member Countries, 1990-2007 based on the gap between cif and fob values of ASEAN exports to Australia. The cif/fob gap is a commonly used aggregate measure of trade costs, and Australia is a useful benchmark for ASEAN countries because it is a large trading partner whose major ports of entry are roughly equidistant from the ASEAN countries. The case for using this Index as a measure of trade costs is set out in the first section. The second section examines the raw data for the ASEAN countries. The third section reports econometric analysis of the cif/fob measure to better understand why trade costs vary across countries and to compare the ASEAN members' record to the global average during the period 1990-2007. The final section presents the two versions of the Index, discusses some reservations to using the cif/fob measure of trade costs, and suggests how the Index could be upgraded, maintained and extended.Trade costs; ASEAN.
Special Economic Zones and Economic Corridors
Full text linkVarious reports show that special economic zones (SEZ) have become a prime catalyst for regional development in developing countries such as China and the ASEAN countries. The SEZ can be defined as a specific geographical region with economic laws that are more liberal than a country's typical economic laws. Many SEZs have characteristics of bonded zones, export processing zone (EPZ) or free trade zones and provide special incentives, including tax exemption or reduction to investors. The purpose of the paper is to enumerate the candidates for SEZ in Cambodia, Laos, Myanmar, and Vietnam (CLMV countries) according to four types: "metropolitan areas," "ports and harbors," "border areas" and "junctions or intersections." The first two types are based on the experience of forerunning ASEAN countries and the latter two are based on the economic corridors of the Greater Mekong Sub region Economic Cooperation Program. The paper concludes by identifying locations for the questionnaire and flowchart approach-based surveys, and presenting country-specific strategies.ASEAN, SEZ, Port, Harbor, Junction, Economic Corridor, CLMV, GMS.
Replication Files for “What Goes Around Comes Around: Export-Enhancing Effects of Import-Tariff Reductions”
No full textThe zip file includes the files to replicate the estimation results in “What Goes Around Comes Around: Export-Enhancing Effects of Import-Tariff Reductions.
Replication Files for “Multiple Preference Regimes and Rules of Origin”
No full textReplication Files for “Multiple Preference Regimes and Rules of Origin
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