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Regional Economic Integration, Foreign Direct Investment and Efficiency-Seeking Industrial Restructuring in Asia : The Case of India

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  • Nagesh Kumar

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Abstract

This paper examines the Indias RTAs policy in Asia and the emerging patterns of efficiency-seeking industrial restructuring unleashed by it. Section 2 provides a discussion of the analytical relationship between RTAs, patterns of trade, FDI resulting from the industrial restructuring. It also summarizes some examples of industrial restructuring of the type the EUs Single Market Plan has led to. Section 3 summarizes the Indias RTA policy in Asia and indicators of its growing economic integration with East Asian countries. Section 4 highlights the emerging patterns of industrial restructuring resulting from Indias RTAs policy. Section 5 concludes the paper with a few remarks on the importance of a broader framework for regional economic integration.

Suggested Citation

  • Nagesh Kumar, 2007. "Regional Economic Integration, Foreign Direct Investment and Efficiency-Seeking Industrial Restructuring in Asia : The Case of India," Macroeconomics Working Papers 22110, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:macroe:22110
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    References listed on IDEAS

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    1. Mukul G. Asher & Rahul Sen, 2005. "India-East Asia Integration : A Win-Win for Asia," Macroeconomics Working Papers 22081, East Asian Bureau of Economic Research.
    2. Nagesh Kumar, 1998. "Multinational enterprises, regional economic integration, and export-platform production in the host countries: An empirical analysis for the US and Japanese corporations," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 450-483.
    3. Indra Nath Mukherji, 2000. "Indo-Sri Lankan Trade and Investment Linkages: with Special Reference to Sapta and Free Trade Agreement," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, pages 53-77.
    4. Nagesh Kumar, 2000. "Explaining the geography and depth of international production: The case of US and Japanese multinational enterprises," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), pages 442-477.
    5. 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.
    6. Ayhan Kose & Christopher M Towe & Guy M Meredith, 2004. "How Has Nafta Affected the Mexican Economy? Review and Evidence," IMF Working Papers 04/59, International Monetary Fund.
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    Cited by:

    1. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, September.
    2. Nagesh KUMAR, 2008. "Internationalization of Indian Enterprises: Patterns, Strategies, Ownership Advantages, and Implications," Asian Economic Policy Review, Japan Center for Economic Research, vol. 3(2), pages 242-261.
    3. Nagesh Kumar, 2007. "Investment Provisions in Regional Trading Arrangements in Asia: Relevance, Emerging Trends, and Policy Implications," Working Papers 4607, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    4. Nagesh Kumar, 2007. "Investment Provisions in Regional Trading Arrangements in Asia : Relevance, Emerging Trends, and Policy Implications," Trade Working Papers 22109, East Asian Bureau of Economic Research.

    More about this item

    Keywords

    FDI; RTA; industrial restructuring; economic integration;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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