ASEAN Economic Bulletin Vol. 7/3 (Mar 1991)

ASEAN Economic Bulletin Vol. 7/3 (Mar 1991)
Date of publication:  March 1991
Number of pages:  116
Code:  AE7/3


  • Preliminary pages
  • ASEAN Economic Co-operation in the New International Economic Environment, by Seiji F Naya, Michael G Plummer, authors
    The Association of South East Asian Nations (ASEAN) is currently at an important watershed. As an organization and as individual member countries, ASEAN has been undergoing major internal changes that have important implications for the future. All member states are implementing policies of economic liberalization, export promotion, and greater participation in the international marketplace, a major change for some. Moreover, changes in the international economic environment, including contradictions stemming from increased globalization and interdependence on the one hand, and the current trend toward bilateralism and protectionism on the other, render ASEAN economic co-operation more compelling. ASEAN economic co-operation programmes have in the past been limited, but new paths are being explored to take advantage of resource pooling and market sharing. And while ASEAN countries should continue to embrace unilateral liberalization and advocate multilateral co-operation at GATT and in other forums, significant advantages may be reaped through greater regional economic integration and working more closely together as a "bargaining bloc" in international negotiations.
  • Towards Regional Entities in Asia-Pacific: The Role of Japanese Foreign Investment in Service Industries, by Rolf J Langhammer, author
    The article presents a new taxonomical approach to define economic sub-regions in East, South and Southeast Asia. Based on the concept of transaction costs and the role of foreign direct investment (FDI) to lower important parts of such costs, the degree of temporal similarity in flows of Japanese FDI in service industries to individual Asian host countries is taken as a yardstick. Some host countries are exposed as members a region if they attracted flows of FDI to the same extent (in relative terms) and during the same period. The results, condensed in bilateral similarity indices, qualify the Association of South East Asian Nations (ASEAN) countries together with Hong Kong and South Korea to form a region in contrast to countries like Australia, New Zealand, China, and India which show distinctly different patterns of FDI inflows. Determinants of bilateral similarity indices are tested in a regression approach but the results do not reveal stable relationships.
  • Competition among ASEAN, China, and the East Asian NICs: A Shift-Share Analysis, by Fred Herschede, author
    An important regional issue emanating from recent economic developments in the Pacific Rim area concerns direct rivalry among ASEAN, China, and the East Asian NICs in the import markets of developed third countries. For example, as latecomers to industrialization, China and ASEAN tend to specialize in the same labour-intensive export products, such as textiles and electrical goods. This article analyses recent trade data for the third-country market of Japan to assess the extent of Asian (China, the NICs, and ASEAN) competition. Shift-share analysis is used to measure the magnitude of Asian economic rivalry. The results of the shift-share analysis suggest that ASEAN exports have suffered the most from the recent entrance of China into the Japanese market. The NICs, however, on balance performed very well in their exports to Japan, particularly with respect to manufactured products.
  • Using Economic Methodology to Assess Competing Models of Economic Policy-Making in Indonesia, by Wing Thye Woo, author
    Two principles from economic methodology (revealed preference and prediction) are used to test competing models of the Indonesian state. The dominant models in the literature can be encompassed by the characterization that effective political participation is limited to the highest echelon of the military and bureaucratic structure, and to the biggest capitalists. This view is flawed in two ways. First, it was deduced from an incomplete application of the revealed preference principle. Its empirical basis lies in the distributional consequences of only one systemic policy trade policy. When the distributional impact of four other systemic policies (exchange rate, expenditure, credit and agricultural policies) are considered, rural and regional interests are found to be important determinants of policy choices. The second flaw of conventional wisdom is that its predictions the course of state-society interaction have been falsified. Outcomes are more in line with the predictions from a corporatist model.
  • The Politics of Privatization in the ASEAN States, by R S Milne, author
    Some political aspects of privatization in the states of the Association of South East Asian Nations excluding Brunei) merit study. In addition to economic and technical problems, privatization may be slowed if important political groups are opposed to it, e.g. labour or some managers/bureaucrats. In Thailand, labour opposition, often in conjunction with some of the military, is powerful. Indonesia, with a tradition opposed to "economic liberalism", has had to proceed cautiously. In the Philippines, "too effective" a system of checks and balances has made for slow progress. There is also a lack of political will on the part of President Aquino. On the other hand, in Singapore and Malaysia, where privatization has been most extensive, there has been a high degree of both political will and administrative capability.
  • DOCUMENTATION: Joint Press Statement of the 9th Meeting of the ASEAN Economic Ministers on Energy Cooperation, Manila, 15-16 November 1990
  • DOCUMENTATION: Joint Press Statement of the 22nd Meeting of the ASEAN Economic Ministers, Denpasar, Indonesia, 29-30 October 1990
  • DOCUMENTATION: Opening Address by H E Radius Prawiro, Coordinating. Minister for Economy, Finance, Industry and Development Supervision, Indonesia at the 16th ASCOPE Meeting, Jakarta, 6-8 September 1990
  • DOCUMENTATION: Joint Communique of the Negotiation of Three-Way Free Trade Agreement between the United States, Mexico and Canada, Washington, 5 February 1991.
  • DOCUMENTATION: Statement by U S Trade Representative Carla Hills on the proposed North American Free Trade Agreement, Washington, 5 February 1991
  • DOCUMENTATION: Dismantling Trade Barriers. IMF Managing Director addresses Uruguay Round, Brussels, 4 December 1990
  • BOOK REVIEW: Global Adjustment and the Future of the Asia-Pacific Region, edited by Miyohei Shinohara and Fu-Chen Lo, by Michael G Plummer, author
  • BOOK REVIEW: International Economic Pluralism: Economic Policy in East Asia and the Pacific, by Peter Drysdale, by Richard Stubbs, author
  • BOOK REVIEW: Agricultural Trade and Protection in Japan, by Jimmye S Hillman and Robert A Rothenberg, by Sueo Sudo, author
  • BOOK REVIEW: India: Recent Developments and Medium Term Issues, by James A Hansen; India: Poverty, Employment and Social Services, by James A Hansen and Samuel S Lieberman, by Richard P Cronin, author
  • Conferences, Workshops and Seminars
  • ASEAN Chronology 1990/91
  • Some Recent Publications
  • Index to Volume 7

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