This working paper introduces the concept of Trade in Value Added (TiVA) and presents an initial analysis of TiVA for selected regional ESCAP economies. The paper introduces Global Value Chains (GVCs) and issues for the measurement of trade statistics due to proliferation of GVCs. It further presents the TiVA estimation methodology, as defined in the literature, and provides an overview of the data requirements for estimation. The paper reviews current initiatives on regional / international input-output tables (IOTs) and TiVA analysis, and availability of data in the Asia-Pacific region.
Outward foreign direct investment (OFDI) by Indian firms has increased significantly in recent years. Such investments by Indian firms have gone to more than 100 host countries. However, little is known about the effects of such OFDI on domestic activity of Indian multinational enterprises (MNEs). The paper investigates the home-country effects of OFDI by Indian manufacturing firms during 2008/09 to 2011/12 using a quasi-experimental technique.
Abstract: Recent reforms in Myanmar have already shown some positive impacts on the manufacturing sector, which must play a key role in the industrial transformation, including increased investment flows domestically and internationally and the development of fundamental infrastructure for the sector. Government promotion of the development of industrial zones and special economic zones is one of the main development activities for further trade and investment promotion in the manufacturing sector.
Enabling participation of SMEs in international trade and production networks: trade facilitation, trade finance and communication technology
This study aimed at identifying key factors affecting SME participation in direct export and international production networks (IPNs), both globally and in Asia and the Pacific. A global dataset of firm-level data from developing countries was analyzed to identify the main obstacles to establishment and operation of direct and indirect small and medium size exporters. Logit models of SME export and IPN participation revealed the importance of several trade facilitation and related factors.
Abstract: Several theories have been put forward by the researchers to explain foreign direct investment. However, no single theory fits the different types of direct investment or the investment made by a particular multinational corporation or country in any region. This paper traces the evolution of the theories of foreign direct investment (FDI) during the past few decades. An attempt is also made to explain the growth phenomenon of Third World multinational companies. The applicability of the theory differs with the type and origin of investment.
Over the last ten years, Chinese enterprises have become more multi-national in nature. China’s outward foreign direct investment (OFDI) has been growing at a phenomenal rate. In 2012, China became the third largest investor, after the US and Japan; and the largest investor among developing countries. How can host governments attract more of this Chinese capital? What are some short to medium term policies that host governments can initiate to make their respective nations attractive to Chinese investors?
Abstract: Myanmar’s emergence from decades of isolation provides an opportunity to learn from the experiences of its neighbours to guide its economic transition and achieve strong and inclusive growth. The development of small and medium-sized enterprises (SMEs) is an effective mechanism in achieving socioeconomic growth, but Myanmar poses a list of challenges that need to be overcome first, including poor infrastructure and limited market access.
Effects of environmental regulations on South Asian food and agricultural exports: A gravity analysis
Regardless of the occasional dissenting voices, free trade is now being embraced by many of the nations of the world. South Asian countries joined the global consensus for frictionless trade by forming regional trade blocs under the banner of the South Asian Association for Regional Cooperation (SAARC). However, intra- and interregional trade in SAARC has not yet reached the desired stage, and a range of empirical studies have therefore been carried out with the objective of determining the causes.
Determinants of export intensity and propensity among small and mediumsized enterprises: The case of the Philippines
Abstract: The small and medium enterprise (SME) sector in the Philippines is a significant group within the economy in terms of firm numbers and total employment. However, the SME sector’s share of exports is disproportionately small, which raises considerable policy concerns. Prompted by the aforementioned policy issue, this study assesses the different factors that affect SME decisions (a) to export (propensity) and (b) on how much to export (intensity), i.e., export performance.
Abstract: Several studies using firm-level data could not find significant evidence to support that exporting activities promote productivity growth. However, few studies have considered whether exporting companies can create spillovers to domestic firms. In fact, exporting companies create positive productivity spillovers to their domestic peers (horizontal spillovers), suppliers (backward linkage spillovers) and buyers (forward linkage spillovers).