Evaluating the Effects of Trade and Investment Cooperation in East Asia

International Multi-Conference on Industrial Engineering and Modern technologies

Dyomina, Y.^1 ; Mazitova, M.^1

Economic Research Institute FEB RAS, Tikhookeanskaya Str. 153, Khabarovsk

680042, Russia^1

关键词: Average annual growth rates;    Capital flow;    East Asian countries;    Host countries;    International production networks;    Local populations;    Local resources;    Second group;   

Others  :  https://iopscience.iop.org/article/10.1088/1757-899X/463/4/042083/pdf
DOI  :  10.1088/1757-899X/463/4/042083

来源: IOP

【 摘 要 】

The authors analyze trade and investment flows within East Asian countries as a part of international production networks (IPNs) functioning in the region. The study focuses on FDI flows between ASEAN+3 countries. Liberalization of cross-border capital flows contributed to the growth of FDI flows between ASEAN+3 countries. During 2010-2016 the average annual FDI inflows to ASEAN amounted to $112.1 billion. The maximum volume was in 2014 ($133.1 billion), the minimum - in 2011 ($87.7 billion). The average annual growth rate of FDI inflows was zero. The simulation results show that due to the factors of FDI attraction East Asian countries form two groups. The first group includes ASEAN for which GDP and population of the host country don't affect FDI inflows because these countries are mostly included in global IPNs and goods produced by TNCs on their territory aren't consumed by local population and are exported to the source countries of investment. In this case, the main factors of FDI attraction are cheap local resources. The second group includes the "Big Three" for which the main factor of FDI attraction is the solvent population. In this case, the goods produced by TNCs are consumed by local population. Thus, the substantial dependence of ASEAN on "outward" FDI is due to the integration of these countries into global IPNs. Per-haps, with the increasing solvency of local population, ASEAN countries will change their position as China that has become the largest goods consumer and capital exporter in the region.