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Your time in life is highly appreciated in my life. Huang Ping, the professor of International Finance. This thesis addresses the relationship between economic development and trade openness as well as some structural factors i. This thesis has three objectives. Second, it quantitatively estimates the effect of international trade on economic development of the ASEAN nations.
Finally, it investigates how the effect of international trade on economic growth varies as a result of differences in human capital, financial resources and institution across the ASEAN nations. To accomplish these tasks, panel dataset on the ASEAN nations from to are collected and pooled OLS, fixed-effect and instrumental variable models are applied to the dataset.
Taking into account a variety of specification issues as well as endogeneity of trade openness, the research results show that trade openness plays an extremely important role on economic development of these countries. In addition, the benefit from trade openness is greater in countries that have more educated workers, deeper financial resources and better quality of institution.
In conclusion, this thesis suggests that these structural factors need to be strengthened in order to benefit more from international trade. International trade; human capital; financial development; institution; ASEAN; fixed effect; instrumental variable; policy reforms. In the past several decades, more and more countries have considered international trade in an increasingly integrated world a necessary avenue to realize comparative advantages and to grow national economy.
Recently there have been multiple free trade agreements and regional integration agreements. Celderon and Poggio found that the world trade has grown as fast as world output over the last two decades and as a result economic integration is accelerated. Many trading blocs have actively facilitated trade and economic welfares in the respective nations. For example, the European Union EU is a trading bloc in Europe which can be considered as the oldest one in the word. The later bloc has continuously expanded by including more countries in East Asia. China, Japan and South Korea. The purposes of expansion are to strengthen their cooperation in the areas of food and energy security, financial cooperation, trade facilitation, disaster management, people-to-people contacts, narrowing the development gap, rural development and poverty alleviation, human trafficking, labor movement, communicable diseases, environment and sustainable development, and transnational crime, including counter-terrorism.
Moreover, regional trading blocs are also created in Africa, such as the ten Caribbean British colonies and other regions. Subsequently, a new member, Brunei, joined the regional trading organization in A decade later, Vietnam, a communist country, decided to transform its economy to a market economy and joined ASEAN in Tablel lists the member countries and the dates they joined the organization. As ASEAN Declaration articulates, the purpose to form ASEAN organization are to strengthen the foundation of economic cooperation and to promote a prosperous and peaceful community by facilitating economic growth, social progress, and cultural development and by carrying forward the spirit of equality and partnership.
ASEAN promotes not only economic growth, but also peace and social stability in the region. The member countries are to help each other in sharing research facilities and in training in the fields of administration, education, profession as well as technology. Among all these purposes of ASEAN organization, the most obvious and important one is to expand the trade among the member countries.
To reach these goals and more specifically to expand intra-regional and inter-regional trade and strengthen the economic development, the member countries formed the other agreements and implemented specific strategies. I will describe only those agreements and communities which are related to the scope of this thesis.
It is a crucial tool to enhance intra-ASEAN economic cooperation and to sustain the economic growth and development of all member countries. This agreement is an important factor to the stability and prosperity in the region. In addition, this free trade agreement serves as an instrument to help the ASEAN economies achieve greater trade and investment competitiveness in the world economy.
Human capital as an essential and measurable asset. This task might help this region knows how important the trade complementarities are in reducing income gap that might benefits from trade openness in the region. HC like the educational level, commitment to the company and ability of team-work are taking a major position for a successful process, especially because the employees skills can create a companies core competence. Our newsletter keeps you up to date with all new papers in your subjects. Free Publication of your term paper, essay, interpretation, bachelor's thesis, master's thesis, dissertation or textbook - upload now! GRIN Publishing, located in Munich, Germany, has specialized since its foundation in in the publication of academic ebooks and books.
The attraction of the ASEAN region to regional and foreign investors would be made through the pooling of the resources and the market. Consequently, foreign companies locating in ASEAN would be able to exploit scale economies and renationalize production, allocating different segments of the value chain, production processes, and products among the ASEAN countries based on their respective competitive advantage Chia Siow Yue, The preferential tariff can be regarded as the cornerstone of AFTA with the general provisions for the removal of tariffs and non-tariff barriers and the exploitation of non-border areas of cooperation such as harmonization of standards, reciprocal recognition of tests and certification of products, removal of barriers to foreign investments, macroeconomic consultations, fair competition rule, and promotion of venture capital [4].
However, according to the study of Chia Siow Yeu , tariffs may not represent the most serious obstacle to intra-regional trade and may not have substantive impact on trade growth. He argued that the quantitative restrictions and other non-tariffs barriers are often more serious deterrents to intra-regional trade than tariffs. The reduction in tariff is not rational to the increasing in trade and income distribution. In this context, traders may have problems with some border barriers such as tedious import documentation and procedures, and disputes over arbitrary customs valuation and rules of origin, as well as the other non-border obstacles such as a lack of harmonized standards, sanitary regulation, and labeling and packaging requirements.
The implementation of AFTA has also confronted other problems. Bowles pointed out that the expansion of its membership, the desire to move beyond simply freeing trade, the issues of non-tariff barriers, macroeconomic coordination and investment policy are the big confrontations He also argued that the big challenges are the fear of investment diversion in terms of the increasing mobility of capital and the competition from other countries.
Moreover, Soesastro considered that the lack of private sector awareness, the lack of clarity in the application of the Rules of Origin ROO , problems with custom procedures, and the lack of the dispute settlements are also the big problems in the implementation of AFTA In order to facilitate the economic integration in the region, ASEAN has been trying to implement policies and agreements e.
After all, ASEAN recognizes that trade liberalization should be undertaken without hesitation because it is the main driver of the integration process. Removing tariffs and non-tariff barriers is the crucial catalysts for the ASEAN countries to gain greater efficiency and long-term competitiveness and to attract the investment inflow from the globe.
Consequently, the final benefits would be given to ASEAN consumers with a wider choice of better quality consumer products. This blueprint can also be a tool to coordinate many efforts to drive the process of integration. It implies opening up of regional economic integration to greater public scrutiny. It has clear characteristics to make ASEAN as 1 a single market and production base, 2 a highly competitive economic region, 3 a region of equitable economic development and 4 a region fully integrated into the global economy. In this context, some new mechanisms and measures as well as a clear timeline have been made in the compliment to the existing ones.
Previous study also suggested some ideas on the process to develop the region as a single production base and a single market. Soesastro suggested some elements needed to be taken into account such as free and open investment, trade and freeing flow of goods, selective services sector liberalization, infrastructure development and intuitional mechanism. As stated earlier, free flow of goods is a crucial mean to achieve a single market and production base.
As I mentioned in the previous parts, the zero tariff which is stated in the AFTA-CEPT is not the only way to accomplish the free flow of goods, but also the other non-tariff barriers to trade facilitation, and the commitment to remove all non-tariff barriers NTBs has already been done in , and in for Philippines, and will be done by for Cambodia, Laos, Myanmar and Vietnam CLMV.
Meanwhile China was the fastest growing trade partner an upsurge of more than ten-fold in trade with ASEAN since the Asian financial crisis in The main objective of AIA is to realize more comprehensive and obligation such as investment protection, facilitation and cooperation, promotion and awareness to increase the investor confidence. Moreover, the region should think about its location advantages that are the factors needed to be improved by the ASEAN governments in order to attract more export-oriented foreign investment.
The study of Soesastro suggested that some factors that affect location advantages are needed to be taken into account such as trade protection, the formation of industrial clusters and sufficient public resources and the efforts to foster local firms. To make this region as an attractive economic and investment area, measures to enhance transparency and predictability are also the key factors for investors. From Figure 3, capital formation through foreign direct investment is largely different among the new members and the old ones.
It reveals that the new members in CLMV seem to have something less to attract foreign direct investment than the old members whose economies are more developed. This is true to the studies of Soesastro regarding the determinants which matter location advantage.
This task might help this region knows how important the trade complementarities are in reducing income gap that might benefits from trade openness in the region. Previously, there were several works which studied on the costs and benefits as well as the general assessment of ASEAN countries.
However, those studies seemed to ignore the interaction between trade openness and structural factors. The previous works on ASEAN studies from Soesastro , Bowles , Thangvavelu and Chongvilaivan , Chia Siow Yue only used the descriptive approach to show the situation in regionalism and trade flows of this region without the exact empirical investigation to find the effect of foreign trade and the roles of trade complementarities on economic development of these nations. This thesis is different from previous studies Soesastro, ; Bowles, ; Thangvavelu and Chongvilaivan, ; Chia Siow Yue, ; Frankel and Romer, ; Linh, in several dimensions.
Although capabilities, like a high experience-and education level, should be mentioned within the business plan. A companies research and development department is an important driver for the companies competitiveness. It is responsible for doing researches according to gain knowledge and improve innovations. HC like the educational level, commitment to the company and ability of team-work are taking a major position for a successful process, especially because the employees skills can create a companies core competence.
As the marketing department has the function to integrate the organisational objectives into a product presentation, these employees need to be creative and able to react spontaneously on changed environmental conditions to serve the fast growing markets needs. BWL - Personal und Organisation. Business economics - Personnel and Organisation. Business economics - Operations Research. Soziologie - Arbeit, Beruf, Ausbildung, Organisation. Business economics - Business Management, Corporate Governance. GRIN Publishing, located in Munich, Germany, has specialized since its foundation in in the publication of academic ebooks and books.
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Presentation of HC to Venture Capital Investors The following part examines the role of HC within a business plan by using exemplary the departments management, research and development, marketing and finance as they built the most important parts within a business plan. Human Capital in der Berichterstattung. Abbau von Risiken und Steigerung des Huma The Optimisation of Venture Capital Processes. Human Capital and Economic Growth in Ethiopia.
Bewertung von Humankapital in Unternehmen. Bedeutung des Human Capitals. Brauchen wir einen "Human Capital Index"?