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Myanmar's Economic Relations with China: Can China Support the Myanmar Economy?

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  • Kudo, Toshihiro

Abstract

Against the background of closer diplomatic, political and security ties between Myanmar and China since 1988, their economic relations have also grown stronger throughout the 1990s and up to 2005. China is now a major supplier of consumer and capital goods to Myanmar, in particular through border trade. China also provides a large amount of economic cooperation in the areas of infrastructure, energy and state-owned economic enterprises. Nevertheless, Myanmar’s trade with China has failed to have a substantial impact on its broad-based economic and industrial development. China’s economic cooperation apparently supports the present regime, but its effects on the whole economy will be limited with an unfavorable macroeconomic environment and distorted incentives structure. As a conclusion, strengthened economic ties with China will be instrumental in regime survival, but will not be a powerful force affecting the process of economic development in Myanmar.

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File URL: http://ir.ide.go.jp/dspace/bitstream/2344/152/3/ARRIDE_Discussion_No.66_kudo.pdf
File Function: First version, 2006
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Bibliographic Info

Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 66.

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Date of creation: Jul 2006
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Publication status: Published in IDE Discussion Paper. No. 66. 2006.7
Handle: RePEc:jet:dpaper:dpaper66

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Related research

Keywords: Myanmar (Burma); China; trade; border trade; economic cooperation; energy; oil and gas; International economic relations; International trade; International cooperation;

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  1. Kudo, Toshihiro, 2005. "The Impact of United States Sanctions on the Myanmar Garment Industry," IDE Discussion Papers 42, Institute of Developing Economies, Japan External Trade Organization(JETRO).
  2. Kudo, Toshihiro, 2005. "Stunted and Distorted Industrialization in Myanmar," IDE Discussion Papers 38, Institute of Developing Economies, Japan External Trade Organization(JETRO).
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