Advanced Search
MyIDEAS: Login to save this paper or follow this series

Investment and Capital Flows: Implications of the ASEAN Economic Community

Contents:

Author Info

  • Yap, Josef T.
  • Aldaba, Rafaelita M.

Abstract

One of the objectives of the evolving ASEAN Economic Community (AEC) is to promote free investment flows and freer capital flows. By deepening economic integration among them, ASEAN member countries can establish a region-wide production base that will attract more foreign direct investment and strengthen the existing FDI-trade nexus in East Asia. This will increase the opportunities for domestic firms to participate in regional and global production networks. The principal investment cooperation program of the AEC has been the ASEAN Investment Area which is being expanded to the ASEAN Comprehensive Investment Agreement (ACIA). The chapter delineates measures to make the ACIA more effective, examples of which are adoption of a collective approach and common timeframe of trade and investment liberalization; and transferring mode 3 of services (commercial presence) from the ASEAN Framework Agreement on Services to the ACIA. Meanwhile, because of the risks that underlie movement of capital flows, it is recommended that regional financial integration give way to regional financial cooperation. The latter can be an important mechanism to accelerate the development of national financial systems, particularly through a more effective policy dialogue and surveillance process. Since greater global financial integration is a desirable long-term goal, regional financial cooperation can also be geared toward advocating for reform of the international financial architecture and crafting region-wide tools to manage capital flows. These will reduce the risks associated with financial integration. With regard to the issue of optimal sequencing in the process of capital account liberalization, the development of national financial systems remains to be an important component and prerequisite.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://serp-p.pids.gov.ph/serp-p/download.php?d=4433&s=3
Download Restriction: no

Bibliographic Info

Paper provided by Philippine Institute for Development Studies in its series Discussion Papers with number DP 2009-01.

as in new window
Length: 49
Date of creation: 2009
Date of revision:
Handle: RePEc:phd:dpaper:dp_2009-01

Contact details of provider:
Postal: NEDA sa Makati Building, 106 Amorsolo St., Legaspi Village, Makati City,
Email:
Web page: http://www.pids.gov.ph/
More information through EDIRC

Related research

Keywords: capital flows; ASEAN Economic Community (AEC); Foreign direct investment (FDI);

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 111(1), pages 52-102, February.
  2. Sid Ahmed Abdelkader, 1993. "Ronald I. McKinnon, The Order of Economic Liberalization : Financial Control in the Transition to a Market Economy," Revue Tiers Monde, Programme National Persée, Programme National Persée, vol. 34(136), pages 946-946.
  3. Medvedev, Denis, 2006. "Beyond trade : the impact of preferential trade agreements on foreign direct investment inflows," Policy Research Working Paper Series 4065, The World Bank.
  4. Takatoshi Ito & Andrew K. Rose, 2005. "International Trade in East Asia, NBER-East Asia Seminar on Economics, Volume 14," NBER Books, National Bureau of Economic Research, Inc, number ito_05-1.
  5. Eswar S. Prasad & Raghuram G. Rajan, 2008. "A Pragmatic Approach to Capital Account Liberalization," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 22(3), pages 149-72, Summer.
  6. Eduardo Levy Yeyati & Ernesto H. Stein & Christian Daude, 2003. "Regional Integration and the Location of FDI," Research Department Publications, Inter-American Development Bank, Research Department 4343, Inter-American Development Bank, Research Department.
  7. Sven Arndt, 2002. "Production Sharing and Regional Integration," Claremont Colleges Working Papers, Claremont Colleges 2002-10, Claremont Colleges.
  8. Mitsuyo Ando & Fukinari Kimura, 2003. "The Formation of International Production and Distribution Networks in East Asia," NBER Working Papers 10167, National Bureau of Economic Research, Inc.
  9. Waldkirch, Andreas, 2008. "The Effects of Foreign Direct Investment in Mexico since NAFTA," MPRA Paper 7975, University Library of Munich, Germany.
  10. Egger, Peter & Pfaffermayr, Michael, 2005. "The determinants of intra-firm trade: in search for export-import magnification effects," Discussion Paper Series 1: Economic Studies 2005,12, Deutsche Bundesbank, Research Centre.
  11. Paul Burkett & Richard Lotspeich, 1993. "Review Article: Financial Liberalization, Development, and Marketization: A Review of McKinnon's The Order of Economic Liberalization: Financial Control in the Transition to a Market Economy (1991)," Comparative Economic Studies, Palgrave Macmillan, vol. 35(1), pages 59-84, April.
  12. Stefano Schiavo, 2005. "Financial integration, GDP correlation and the endogeneity of optimum currency areas," Working Papers, University of Verona, Department of Economics 25, University of Verona, Department of Economics.
  13. Shatz, Howard J. & Venables, Anthony J., 2000. "The geography of international investment," Policy Research Working Paper Series 2338, The World Bank.
  14. Kim, Soyoung & Lee, Jong-Wha & Shin, Kwanho, 2006. "Regional and Global Financial Integration in East Asia," MPRA Paper 695, University Library of Munich, Germany.
  15. Guillermo A. Calvo & Leonardo Leiderman & Carmen M. Reinhart, 1994. "The Capital Inflows Problem: Concepts And Issues," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 54-66, 07.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. del Prado, Fatima & Macasaquit, Mari-Len R. & Cabalfin, Michael R. & Mantaring, Melalyn C., 2010. "Development of Regional Production and Logistic Networks in East Asia: the Case of the Philippines," Discussion Papers, Philippine Institute for Development Studies DP 2010-17, Philippine Institute for Development Studies.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:phd:dpaper:dp_2009-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Aniceto Orbeta).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.