Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three

ASEAN -5 plus 3 ( Malaysia, Thailand, Philippines, Singapore, Indonesia, Japan, Korea and China) have undergone a substantial trade liberalization in the mid 1980s. As a result, the share of exports in GDP has also risen as the region became more industrialized. A greater reliance on exports has hel...

Full description

Saved in:

Bibliographic Details
Main Author:	Yong, Chen Chen
Format:	Thesis
Language:	English English
Published:	2007
Subjects:	Free trade - Asia Southeastern
Online Access:	http://psasir.upm.edu.my/id/eprint/5044/1/FEP_2007_15.pdf
Tags:	Add Tag No Tags, Be the first to tag this record!

id	my-upm-ir.5044
record_format	uketd_dc
spelling	my-upm-ir.50442013-05-27T07:19:59Z Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three 2007 Yong, Chen Chen ASEAN -5 plus 3 ( Malaysia, Thailand, Philippines, Singapore, Indonesia, Japan, Korea and China) have undergone a substantial trade liberalization in the mid 1980s. As a result, the share of exports in GDP has also risen as the region became more industrialized. A greater reliance on exports has helped the region to sustain rapid growth rate but at the same time it has made the region more dependent upon import demand from the rest of the world particularly the industrial countries. These countries were running huge surpluses in 2000 and 2001, compared with large deficits just a few years earlier. Indeed, it is assumed that the initial export growth and trade surplus generates such favourable responses in the economy that the balance of payments surplus actually grows. There is no consideration given to the possibility that the rate of growth of income determined by the rate of growth of imports and thereby imposing a constraint on the export-led growth rate. In addition, there is a fairly well defined and trade-off showing that the faster the rate of growth of output, the worse the trade balance in the balance of payments; and conversely, as growth slowed the deficit improved and a surplus developed. Thus we should analyze whether the economic growth is constrained by the trade balance in the balance of payments. Panel analysis is employed to estimate the effect of trade liberalization on export growth, import growth and the balance of payments for ASEAN-5 plus 3 based on Thrilwall’s Law for a sample period of 1970-2003. This study finds that liberalization stimulated export growth but raised import growth by more for Japan, Malaysia and Korea. Among all, Indonesia is found to be constrained by the external market. In conclusion, the findings have important implications for the sequencing and degree of liberalization. Free trade - Asia, Southeastern Balance of payments - Asia, Southeastern Economic development - Asia, Southeastern 2007 Thesis http://psasir.upm.edu.my/id/eprint/5044/ http://psasir.upm.edu.my/id/eprint/5044/1/FEP_2007_15.pdf application/pdf en public phd doctoral Universiti Putra Malaysia Free trade - Asia, Southeastern Balance of payments - Asia, Southeastern Economic development - Asia, Southeastern Faculty Economics and Management English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
topic	Free trade - Asia Southeastern Free trade - Asia Southeastern Free trade - Asia Southeastern
spellingShingle	Free trade - Asia Southeastern Free trade - Asia Southeastern Free trade - Asia Southeastern Yong, Chen Chen Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
description	ASEAN -5 plus 3 ( Malaysia, Thailand, Philippines, Singapore, Indonesia, Japan, Korea and China) have undergone a substantial trade liberalization in the mid 1980s. As a result, the share of exports in GDP has also risen as the region became more industrialized. A greater reliance on exports has helped the region to sustain rapid growth rate but at the same time it has made the region more dependent upon import demand from the rest of the world particularly the industrial countries. These countries were running huge surpluses in 2000 and 2001, compared with large deficits just a few years earlier. Indeed, it is assumed that the initial export growth and trade surplus generates such favourable responses in the economy that the balance of payments surplus actually grows. There is no consideration given to the possibility that the rate of growth of income determined by the rate of growth of imports and thereby imposing a constraint on the export-led growth rate. In addition, there is a fairly well defined and trade-off showing that the faster the rate of growth of output, the worse the trade balance in the balance of payments; and conversely, as growth slowed the deficit improved and a surplus developed. Thus we should analyze whether the economic growth is constrained by the trade balance in the balance of payments. Panel analysis is employed to estimate the effect of trade liberalization on export growth, import growth and the balance of payments for ASEAN-5 plus 3 based on Thrilwall’s Law for a sample period of 1970-2003. This study finds that liberalization stimulated export growth but raised import growth by more for Japan, Malaysia and Korea. Among all, Indonesia is found to be constrained by the external market. In conclusion, the findings have important implications for the sequencing and degree of liberalization.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Yong, Chen Chen
author_facet	Yong, Chen Chen
author_sort	Yong, Chen Chen
title	Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
title_short	Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
title_full	Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
title_fullStr	Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
title_full_unstemmed	Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three
title_sort	effects of trade liberalization on economic growth and balance of payment of asean five plus three
granting_institution	Universiti Putra Malaysia
granting_department	Faculty Economics and Management
publishDate	2007
url	http://psasir.upm.edu.my/id/eprint/5044/1/FEP_2007_15.pdf
_version_	1747810338330378240

Effects Of Trade Liberalization On Economic Growth And Balance Of Payment Of ASEAN Five Plus Three

Similar Items