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Spatial panel analysis on ASEAN–China trade links

The change of trade structures from the dynamic development of production networks globally had caused processing trade to become more prominent in China. This change drives ASEAN5 to be more aggressive in developing vertical intra-industry trade (VIIT) with China. This study aims to identify the ca...

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Main Authors: Yong, Chen Chen, Yew, Siew Yong, Chin, Mui Yin
Format: Article
Published: World Scientific Publishing 2019
Subjects:
HF Commerce
Online Access:http://eprints.um.edu.my/22963/
https://doi.org/10.1142/S0217590816500272
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spelling my.um.eprints.229632019-11-04T09:14:04Z http://eprints.um.edu.my/22963/ Spatial panel analysis on ASEAN–China trade links Yong, Chen Chen Yew, Siew Yong Chin, Mui Yin HF Commerce The change of trade structures from the dynamic development of production networks globally had caused processing trade to become more prominent in China. This change drives ASEAN5 to be more aggressive in developing vertical intra-industry trade (VIIT) with China. This study aims to identify the catalysts that strengthened the VIIT relationship between ASEAN5 and China for manufacturing sub-sectors. Both decomposition-type threshold method and spatial panel econometric modelling are used and the results show that foreign direct investment (FDI) and difference in gross domestic products (DGDP) are the influential determinants of VIIT although their impacts vary across manufacturing sub-sectors. The results also confirm the presence of spatial interaction effects among ASEAN5 countries in relation to China's trade. These suggest that deeper economic integration among ASEAN5 countries is vital in strengthening bilateral VIIT with China. Moreover, to foster the value chain between the two regions, emphasis on performing similar tasks with differentiated varieties of products is essential as the two regions have similar comparative advantages. World Scientific Publishing 2019 Article PeerReviewed Yong, Chen Chen and Yew, Siew Yong and Chin, Mui Yin (2019) Spatial panel analysis on ASEAN–China trade links. The Singapore Economic Review, 64 (03). pp. 709-726. ISSN 0217-5908 https://doi.org/10.1142/S0217590816500272 doi:10.1142/S0217590816500272
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic HF Commerce
spellingShingle HF Commerce
Yong, Chen Chen
Yew, Siew Yong
Chin, Mui Yin
Spatial panel analysis on ASEAN–China trade links
description The change of trade structures from the dynamic development of production networks globally had caused processing trade to become more prominent in China. This change drives ASEAN5 to be more aggressive in developing vertical intra-industry trade (VIIT) with China. This study aims to identify the catalysts that strengthened the VIIT relationship between ASEAN5 and China for manufacturing sub-sectors. Both decomposition-type threshold method and spatial panel econometric modelling are used and the results show that foreign direct investment (FDI) and difference in gross domestic products (DGDP) are the influential determinants of VIIT although their impacts vary across manufacturing sub-sectors. The results also confirm the presence of spatial interaction effects among ASEAN5 countries in relation to China's trade. These suggest that deeper economic integration among ASEAN5 countries is vital in strengthening bilateral VIIT with China. Moreover, to foster the value chain between the two regions, emphasis on performing similar tasks with differentiated varieties of products is essential as the two regions have similar comparative advantages.
format Article
author Yong, Chen Chen
Yew, Siew Yong
Chin, Mui Yin
author_facet Yong, Chen Chen
Yew, Siew Yong
Chin, Mui Yin
author_sort Yong, Chen Chen
title Spatial panel analysis on ASEAN–China trade links
title_short Spatial panel analysis on ASEAN–China trade links
title_full Spatial panel analysis on ASEAN–China trade links
title_fullStr Spatial panel analysis on ASEAN–China trade links
title_full_unstemmed Spatial panel analysis on ASEAN–China trade links
title_sort spatial panel analysis on asean–china trade links
publisher World Scientific Publishing
publishDate 2019
url http://eprints.um.edu.my/22963/
https://doi.org/10.1142/S0217590816500272
_version_ 1651867382663086080
score 13.211869

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