Working Papers

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.

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.

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.

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).

Under the Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) all parties to the agreement are allowed flexibility in issuing licenses for manufacturing pharmaceutical drugs, in line with their public policy objectives. The licenses may be issued under certain conditions, even if the patent holder (innovator) has an exclusive right to the markets. India made use of this flexibility in March 2012 when it granted its first compulsory license to a domestic company for manufacturing and selling a generic version of an anti-cancer drug.

By applying panel estimation models to Chinese provincial level data for 1993- 2008, this paper examine the impacts of China’s coastal foreign direct investment (FDI) and exports on its inland regions. The results show that coastal FDI has overall positive interregional impacts, while coastal exports do not. Cooperative joint ventures generate positive impacts, but little impact is produced by wholly foreign-funded enterprises. In the case of equity joint ventures, there may even be negative impacts.