Border Industry in Myanmar: Turning the Periphery into the Center of Growth
AbstractThe Myanmar economy has not been deeply integrated into East Asiaâ€™s production and distribution networks, despite its location advantages and notably abundant, reasonably well-educated, cheap labor force. Underdeveloped infrastructure, logistics in particular, and an unfavorable business and investment environment hinder it from participating in such networks in East Asia. Service link costs, for connecting production sites in Myanmar and other remote fragmented production blocks or markets, have not fallen sufficiently low to enable firms, including multi-national corporations to reduce total costs, and so the Myanmar economy has failed to attract foreign direct investments. Border industry offers a solution. The Myanmar economy can be connected to the regional and global economy through its borders with neighboring countries, Thailand in particular, which already have logistic hubs such as deep-sea ports, airports and trunk roads. This paper examines the source of competitiveness of border industry by considering an example of the garment industry located in the Myanmar-Thai border area. Based on such analysis, we recognize the prospects of border industry and propose some policy measures to promote this on Myanmar soil.
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Bibliographic InfoPaper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 122.
Date of creation: Oct 2007
Date of revision:
Publication status: Published in IDE Discussion Paper. No. 122. 2007.10
Postal: Publication Office, IDE 3-2-2 Wakaba, Mihama-ku, Chiba-shi, Chiba 261-8545 JAPAN
Find related papers by JEL classification:
- F15 - International Economics - - Trade - - - Economic Integration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
- L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-17 (All new papers)
- NEP-DEV-2007-11-17 (Development)
- NEP-INT-2007-11-17 (International Trade)
- NEP-SEA-2007-11-17 (South East Asia)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kudo, Toshihiro, 2005. "Stunted and Distorted Industrialization in Myanmar," IDE Discussion Papers 38, Institute of Developing Economies, Japan External Trade Organization(JETRO).
- Manabu Fujimura & Ramesh Adhikari, 2010. "Critical Evaluation of Cross-Border Infrastructure Projects in Asia," Working Papers id:2981, eSocialSciences.
- Manabu Fujimura & Ramesh Adhikari, 2010. "Critical Evaluation of Cross-Border Infrastructure Projects in Asia," Development Economics Working Papers 21876, East Asian Bureau of Economic Research.
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