• East Asian Economic Review
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• v.22 no.2
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• pp.177-215
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• 2018

Trump's withdrawal from the Trans-Pacific Partnership (TPP) and his "America First" trade agenda ignite a second round of interest in mega-free trade agreements in the Asia-Pacific. Countries are evaluating alternative trade policy actions in a post-TPP era. Using national real GDP gains estimated by a modified GTAP model to construct "preference ordering" for 10 Association of Southeast Asian Nations members and their six regional dialogue partners, this paper comes up with several policy-oriented findings. First, when multilateral agreements are not possible, countries are better off with a regional trading agreement than without one. Second, the Regional Comprehensive Economic Partnership is likely to have higher beneficial impacts than the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Third, for dual-track countries, implementing both agreements is better than each separately. Fourth, impacts of open regionalism are likely to be higher than those of a closed and reciprocal one. Going forward, this paper argues that countries should adopt a "multi-track, multi-stage" approach to trade policy.

• Journal of East-Asian Urban History
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• v.3 no.1
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• pp.121-138
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• 2021

The Dutch arrived in the islands that now compose Indonesia in the 17^th century, settling first in Banten (1600) and Ambon (1605) before establishing Batavia (1619) and taking over Malacca (1641) from the Portuguese. Referring to this network of strategic bases throughout the Nusantara region, this paper uses the element of urban cultural heritage to examine these four major trade hubs experienced very different destinies as a result of Dutch decisions. It also explores how shifts in political power after Indonesia's independence influenced Jakarta's dominance in modern-day Indonesia. The paper suggests that Dutch opportunism and strategic visions underpinned the decision to make Jakarta the center of colonial power in the 17^th century century. It also concludes that Jakarta's continued importance in political control and policies explains why it retained its position after Indonesia's independence, and these have been supported by recent policy measures. Finally, this paper concludes that, despite its Dutch origins, urban cultural heritage has been embraced by Indonesians.

• East Asian Economic Review
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• v.24 no.3
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• pp.207-235
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• 2020

Acknowledging that individuals dislike having low relative income renders trade less attractive when seen as a technology that integrates two economies by merging separate social spheres into one. We define a "trembling trade" as a situation in which gains from trade are less than losses in relative income, with the result that global social welfare is reduced. We show that a "trembling trade" can arise even when trade is more gainful in four ways: through trade the absolute income of everyone increases, the income gap in both economies is reduced, as is the income gap between the trading economies. However, trade brings populations, economies, or markets that were not previously connected closer together in social space. As a consequence, separate social spheres merge, and people's social space and their comparators are altered. Assuming that people like high (absolute) income and dislike low relative income, the aggregate increase in unhappiness caused by the trade-induced escalation in relative deprivation can result in a negative overall impact of trade on (utilitarian-measured) social welfare, if the absolute income gains are not large enough to mitigate the relative income losses.

• East Asian Economic Review
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• v.18 no.4
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• pp.395-423
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• 2014

This study examines the role of trade finance in the trade collapse of 2008-09 from the perspective of the Korean economy. We use two approaches. Firstly, as background to a more formal analysis, we make a casual observation on the behavior of aggregate data on trade finance, on which Korea has relatively abundant data. Aggregate data do not convincingly support the view that trade finance played an active role in causing the trade collapse. The measures of trade finance and the value of trade both dropped sharply, but the ratio of trade finance over trade was stable and in some cases increased during the crisis period. Secondly, using quarterly data on listed firms in Korea, we conduct panel estimations to test whether firms that are more dependent on external finance experienced greater export contraction during the crisis. Our regression analysis suggests that the financial vulnerability of firms, measured by various financial ratios, did not contribute to export contraction during the financial crisis. This observation largely applies even to smaller firms, who are usually thought of as being more vulnerable financially. However, we find that small exporters that relied heavily on cross-border trade payables or receivables suffered larger drops in export growth during the crisis.

• Journal of East-Asian Urban History
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• v.3 no.1
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• pp.57-82
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• 2021

This article examines the urban example of Batu Sawar which served as the capital of the Johor kingdom between 1587 and circa 1615. Around the middle of the eighteenth-century European reference works continued to describe Batu Sawar as the capital of Johor, even though the city had long ceased to serve as a trading center, let alone as Johor's capital, and probably no longer existed. Such observations raise the question of urban impermanence-the transience of sizeable settlements with reference to the Malay Archipelago. Two overarching questions form the backbone of the investigation: First, why did Batu Sawar rise as a regional trading center, and second, what are the reasons that contributed to its decline? Batu Sawar's fate was sealed by a combination of factors that included poor defenses, multiple external shocks, destruction by fire, court politics and rivalry between the early colonial powers.

• East Asian Economic Review
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• v.22 no.4
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• pp.403-425
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• 2018

This paper documents the presence of "sensitive sectors" in Free Trade Agreements, defined as sectors for which the within-FTA tariffs remain positive. The paper includes some brief theoretical discussion of the welfare implications of these, but the main emphasis is on reporting two measures of this phenomenon for countries in FTAs that entered into force between 1994 and 2003. One measure is the percentage of tariff lines that remain dutiable, and the second is the change, from before the FTA to after, in the average maximum (across 6-digit products) positive tariffs. Both measures are derived from data in the UNCTAD TRAINS database, and are then related to measures of country characteristics that might explain them. Low per capita GDP countries tend to have larger fractions of dutiable tariff lines, while higher income countries tend to post larger increases in average maximum positive tariffs. Both suggest that the favored treatment of sensitive sectors is undermining the potential gains from trade that FTAs could provide.

• East Asian Journal of Business Economics (EAJBE)
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• v.6 no.1
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• pp.31-41
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• 2018

Purpose - The main target to do this analysis is to find out the competitiveness between 2 countries (China and USA) in the aircraft business industry. The main target about mentioned research is to find out how a certain country takes more advantage against the other partner country in the country's trade structure. Research design, data, and methodology - Mentioned research period ranges from 1995 to 2016. Research basic data are coming from UN COMTRADE database which is top of top in the world statistical data and Research methods are used 3 types of international trade related theory for credible data outcomes. Results - Even though general data about aircraft industry are open to world society, detailed classified data are not easy to get them. Generally, Both China & USA are not easy to obtain data especially, in the overseas production field as a business secret which is one of research limitation in every research scopes. Conclusions - Even though Chinese aircraft industry looks like strong and more advantage against those of other countries based on competitive labor work wages and low price of raw material and resources, Actually, USA has overwhelmingly dominant advantage against that of China in the field of aircraft industry because USA has abundant capitals and up-to-date advanced high-technology as top of world economic communities. Additionally, even if USA aircraft industries hold a dominant position so far, if USA proposes sound competition relationship with China about aircraft industry, both 2 countries' future will be bright as their cooperation will make synergy effects for mutual benefits under current circumstances in 2 countries.

• East Asian Economic Review
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• v.25 no.1
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• pp.33-71
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• 2021

Many different approaches and databases have been developed for the evaluation of non-tariff measures (NTMs) and free trade agreements (FTAs). This paper is devoted to the EU-South Korea agreement, which is the first 'second-generation' FTA of the EU, addressing a wide array of non-tariff policies. We review the evolution of NTM types applicable to the EU-South Korea trade relationship and the role of NTMs in ex-ante and ex-post analyses of the agreement. Subsequently a structural gravity model is employed to assess the value added of information on different aspects of FTAs and types of NTMs by evaluating their ability to predict the trade effects of the EU-South Korea FTA. Our results show that, when accounting for information on the components common in modern deep trade agreements, no additional trade effect is attributable to the EU-South Korea FTA. The evolution of NTMs differs considerably across indicators used, but trade predictions are hardly affected. Most specifications point towards a negative effect of bilateral differences in the number of technical barriers to trade (TBT) applied and sanitary and phytosanitary measures (SPS) against which trading partners issued complaints at the WTO.

• East Asian Journal of Business Economics (EAJBE)
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• v.10 no.1
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• pp.11-21
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• 2022

Purpose - Beginning from the formation of the two governments, South and North Korea in 1948, North Korean collective economy as per trade in exchange strategies with right of way employed on heavy and chemical companies, against the external concerned with South Korean selling economy. This study aims to provide solutions for the joint economic prosperity of South and North Korea in the future. Research design, Data, and methodology - This study adopted a qualitative content analysis research method. This research method focuses on themes and concepts that are present in previous literature. This method seeks to derive relationships and meanings by analyzing themes and concepts within existing data. Result - According to qualitative textual analysis, the findings indicate that there are total seven solutions to lead the joint economic prosperity of South and North Korea (Technology Innovation, Energy and Construction, Construction companies and the Gulf market; Oppression via negotiation, Sports and Culture, Agenda-setting and Framing; Competition System). Conclusion - The Korean Government's association strategies outlines tackled in this study are uniform to each other because they are phased, peaceful, regular, and well-designed. But there were situations in which diminutive tenure North Korea approaches was enlisted beyond medium-to-lasting-period union strategies. North Korea should allow a free market whereby its citizens can freely trade among themselves and other people from South Korea.

• East Asian Economic Review
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• v.18 no.4
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• pp.425-461
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• 2014

This paper analyzes the impact of the Canada-Korea Free Trade Agreement on the basis of the published text and agreed schedule of commitments. We find that the Agreement reinforces existing patterns of comparative advantage between Canada (agriculture and resource-based sectors) and Korea (autos and other industries). The sensitive sectors that held up the deal for years - autos into Canada and beef into Korea - witness major trade gains, but are not unduly disrupted. In both economies, the major output gains otherwise come in non-traded services sectors, driven by income effects. We find that trade diversion effects are quite significant; this lends support for the domino theory of major free trade agreements - since the Korea-EU agreement broke the ice, the pressure has intensified on third parties to re-level playing fields by striking their own deals. The study breaks new ground in modelling services trade by developing policy impacts based on the extent to which the text of the Agreement modifies Korea's and Canada's scores on the OECD's Services Trade Restrictiveness Index and by providing estimates of Mode 3 Services trade impacts. The analysis of the Agreement as negotiated, the present study, in our view, is a step forward in understanding the impact of modern free trade agreements.