• The Southeast Asian review
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• v.20 no.3
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• pp.41-64
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• 2010

The recent global financial crisis triggered by the sub-prime mortgage debacle in the United States hit hard most ASEAN countries that have just recovered from the unprecedented economic crisis ten years ago. This paper, using individual time-series and panel data from 1990 to 2009, intends to investigate and compare the impacts of the two aforementioned economic crises on trade in the four developing ASEAN countries that encompass Indonesia, Malaysia, the Philippines and Thailand. In doing so, the paper traces the behaviors of main macroeconomic variables before and after the crises on graphs, and then estimates classical export and import demand functions that include real exchange rate, home and foreign GDPs as explanatory variables. In the estimation functions, two dummy variables are added to consider the effects of the two economic crises separately. Individual country data analyses reveal that by and large the 1997 economic crisis seems hit those ASEAN countries' exports and imports harder than the recent global financial crisis. Surprisingly the recent financial crisis turns out more or less statistically insignificant for those countries' export and import performances. The fixed effect model estimation using panel data of those four ASEAN countries also shows that the 1997 economic crisis had affected exports and imports of those countries negatively while the recent global financial crisis was not statistically significant. These results indicate that overall the effect from the 1997 crisis was more devastating than that of the recent global crisis for those ASEAN countries.

• Journal of Distribution Science
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• v.14 no.1
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• pp.39-49
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• 2016

Purpose - Considering industrialization development stages, an economic effect of ASEAN free trade agreement (FTA) on foreign direct investment (FDI) flows into the ASEAN countries was analyzed. Research design, data, and methodology - utilizing macro-level panel data from 2001 to 2012, panel regression analysis was conducted with a model constructed based on the knowledge-capital model. Results - As for overall ASEAN countries, ASEAN FTA was positively effective to attract vertical FDI to this region, while horizontal FDI was dominant before ASEAN FTA. Meanwhile, for the diversified economy relevant to Singapore, ASEAN FTA was not effective to attract FDI. For the ongoing industrialization economy relevant to Thailand, Malaysia, and the Philippines, ASEAN FTA was negatively effective to attract FDI; ASEAN FTA became a strong incentive to replace foreign investments with trade transactions for the horizontal firms, but an influence of market potentials after ASEAN FTA, which induces to third-country effects such as export platform FDI, has increased. For the incipient industrialization economy relevant to Indonesia, Vietnam, and Cambodia, ASEAN FTA was positively effective to attract vertical FDI. Conclusions - The effectiveness of FTA on FDI inflows varied considerably by the industrialization development stages of host countries.

• The Journal of Information Technology
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• v.6 no.4
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• pp.135-146
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• 2003

In the era of so-called knowledge-based economy, the creation and utilization of IT and new knowledge are recognized as core factors to enforce IT industry and to increase national competitiveness. Advanced countries, therefore, have heavily invested their resources on IT sector and introduced competition into the telecommunication market. ASEAN countries are trying to make themselves informationized society through IT market liberalization and industry development. They are investing lots of resources to construct IT infrastructure such as wired and wireless network and consider informationized society promotion as top national agenda. In this effort, Korea is a benchmarking model for them. Successful entering into ASEAN market requires close analysis and correct understanding of its IT policy and infrastructure. In this paper, therefore, tried to analyse IT policy and infrastructure of three ASEAN countries, which have high potential of economic cooperation in IT with Korea. And based on the analysis, tried to find out ways to enter into ASEAN.

• The Southeast Asian review
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• v.27 no.4
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• pp.41-76
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• 2017

This paper analyses the market shares and the export similarity indexes (ESI) of Korea, Japan and China in ASEAN, and then identifies the determinants of Korea's exports to ASEAN countries using single equation cointegration approaches, such as fully modified OLS (FMOLS), dynamic OLS (DOLS), and canonical cointegration regression (CCR). Various regression results are as follows: As expected, Korea's real exports tend to increase as importing country's GDP grows. The competing third country's currency depreciation affects Korea's exports differently from country to country. Most notably, it doesn't significantly affect Korean exports in Malaysia, Indonesia and Thailand. These results suggest that bilateral or third country exchange rates are not that important or decisive factors to determine Korea's exports to ASEAN countries in the long-run while economic growth in ASEAN countries matters most.

• Journal of Distribution Science
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• v.21 no.2
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• pp.1-6
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• 2023

Purpose: Research on attracting foreign direct investment plays an important role in ASEAN countries. ASEAN has needed FDI capital for development and integration with many developing countries. Research design, data and methodology: This study is conducted to assess the impact of factors: inflation (INF), economic growth (GDP), population (POP), and trade (TRADE) on attracting foreign direct investment (FDI) of ASEAN countries. The study will find out how factors distribution contributes to FDI attraction. The study collects data from 10 ASEAN countries from 2010 to 2020. With data collected for ten countries from 2010 to 2020, data analysis with panel data will be used in this study. The Regression with Driscoll-Kraay standard errors correction model will be used in the study. Results: Panel data analysis shows that economic growth and population positively impact FDI attraction in ASEAN countries. However, two factors: INF and TRADE, do not affect FDI. Conclusions: Countries need to focus on economic development, create many good conditions for people and domestic enterprises and create opportunities for foreign investors to pay more attention. improving the quality of domestic human resources will help to better improve the working quality factor when the demand for high-quality human resources increases.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.10
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• pp.591-599
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• 2020

This study examines how the health of the banks in ASEAN-3 countries namely Indonesia, Malaysia and Thailand respond to the change in exchange rates and foreign interest rates in four large economies. The transmissions of the two external factors through domestic factors in each ASEAN-3 countries eventually affects Non-Performing Loan (NPL) of commercial banks. This study uses the monthly time series data and the renowned Structural Vector Autoregressive (VAR) model comprising five variables, namely exchange rate, foreign interest rate, domestic interest rate, money supply, and non-performing loan (NPL). The results indicate that there are different effects between ASEAN-3 countries, which can be classified as short-run effect and long-run effect. In the long run effect, external factors have a dominant role in determining NPL in ASEAN-3 countries. Yuan has the biggest effect on Malaysia's NPL, while Indonesia is more affected by European interest rates rather than the fluctuation of the US currency and China's interest rates. Among ASEAN-3 countries, Malaysia is the one that is the most vulnerable to external factors. While Thailand's NPL is affected dominantly by domestic factors. This study shows that the Fed Funds Rate (US official interest rate) is not always the dominant factor affecting the health of domestic banks in ASEAN-3.

• The Journal of Asian Finance, Economics and Business
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• v.7 no.12
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• pp.43-52
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• 2020

This paper examines how macroeconomic variables, such as interest rate differences, inflation, exchange rates, economic growth and external debt growth, affect capital flight in the ASEAN-8 countries. We apply a panel data model with fixed effect estimation for the data for eight countries from the period 1994 to 2018. We use the residual approach used by the World Bank to measure the value of capital flight. The results show that the interest rate differences, exchange rates, economic growth and foreign debt growth had a positive and significant effect on outward capital flight. A further implication of this finding is that the interest rate differences, exchange rate, economic growth and foreign debt growth are factors that trigger an increase in capital outflow in the ASEAN-8 countries. Nonetheless, inflation rate is not considered to be the main factor influencing capital flight, as average inflation in the ASEAN-8 countries remains relatively stable. This paper will be beneficial for policymakers in the ASEAN-8 countries and encourage them to constantly pay attention to these four variables, as they significantly influence capital flight, whereas they can disregard the impact of the inflation variable that is not significant in influencing capital flight.

• Journal of the Korean Wood Science and Technology
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• v.46 no.5
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• pp.577-596
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• 2018

ASEAN countries consist of vast coastal areas and thousands of islands that are vulnerable to the effects of climate change on sea level rise. It is believed that this will play an important role in reducing greenhouse gas emissions globally in order to minimize the damage suffered by ASEAN countries. To overcome this issue, biofuels have been used to minimize the impact on the environment by replacing fossil fuels and to reduce greenhouse gas emissions. In those cases of United States, Brazil and Europe, where biofuels are highly utilized, research, development and investment in this field have been actively conducted in the past. In ASEAN countries, however, it has not been a long time since the biofuel policies were established. To overcome this problem, we investigated the renewable fuel policy in the United States, Brazil and the European Union. Based on this, we suggested the utilization plan and prospect of biofuel policy in ASEAN countries.

• The Journal of Fisheries Business Administration
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• v.49 no.1
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• pp.1-15
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• 2018

The main purpose of this study is to explore a way of fisheries cooperation through the ODA demand survey in the fisheries sector on 8 ASEAN countries. In detail, we identified the status of detailed cooperation in the fisheries sector with ASEAN countries and identified new cooperation network construction projects in accordance with the changes in external cooperation environment, and presented strategies and policy directions for fisheries cooperation projects. For this purpose, we surveyed the questionnaires of 8 ASEAN countries using structured questionnaires for local fisheries experts. As a result of the questionnaire analysis, eight ASEAN countries were classified into three groups according to DAC beneficiary standards and suggested implications. Based on the results of the survey, the basic direction of the fisheries cooperation projects in each of the eight countries surveyed was set up, and the preferred projects for fisheries cooperation projects were proposed by dividing them into groups. In addition, the research results were used to systematically establish national promotion plans.

• Korea Trade Review
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• v.44 no.1
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• pp.17-30
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• 2019

This study is to investigate the effect of real exchange rate on bilateral trade balance between Korea and ASEAN 10 countries. Using quarterly data from 1991 to 2017 the paper analyzes whether or not the real depreciation of Korea's won could improve the trade balance in the short and long term. Based on Autoregressive Distributed Lag(ARDL) model, the empirical results show that trade balance, GDP, and real exchange rate are all cointegrated, representing the long-run relationship among variables. In the consideration of long-run relationship, the increases in ASEAN countries' GDP could have a negative impact and Korea's GDP positive impact on trade balance between Korea and ASEAN countries unexpectedly. For the main variable, the paper did not find the long-term effect of real exchange rate on the trade balance, for the short-term effect of the real exchange rate it was found that there exists the J-curve effect only in the case of Vietnam and Brunei. Therefore, these results imply that the intended policy concerning the exchange rate in the free-floating exchange rate system could be limited to improve the trade balance between Korea and ASEAN countries.