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8571. EU trade diplomacy and the cold peace in cross-Strait relations

Author:
Maaike Okano-Heijmans
Publication Date:
11-2016
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Today’s uncertainty in cross-Strait relations is not without consequence for third parties that maintain ties with both China and Taiwan. To what extent does (and should) the situation also impact on EU’s trade diplomacy with both sides? This policy brief argues that under today’s circumstances, the cold peace in cross-Strait relations is reason to tread carefully — and to stay on course. The May 2016 inauguration of the Taiwanese government led by Democratic Progressive Party (DPP) leader Tsai Ing-wen placed a big question mark over the future of cross-Strait relations. Within weeks, Beijing had unilaterally imposed a freeze on (semi-)official talks until the new Taiwanese President acknowledges the so-called 1992 Consensus. While confirming its ‘one China’ policy, the EU may contribute to the stability of cross-Strait relations by being a partner in China’s economic reform and by negotiating EU–China and EU–Taiwan investment agreements in parallel. In this policy brief author Maaike Okano-Heijmans builds on discussions during the 13th Symposium on ‘Sino–EU Relations and the Taiwan Question’, which was held in Shanghai from 9–11 October 2016 and in Taipei from 12–14 October 2016. These second-track dialogues were supported by the Friedrich Ebert Stiftung, the Shanghai Institute of International Studies and the Taiwanese Ministry of Foreign Affairs.
Topic:
International Relations, Foreign Policy, Diplomacy, International Political Economy, and International Trade and Finance
Political Geography:
China, Taiwan, and European Union

8572. Defence industrial policy in Belgium and the Netherlands

Author:
Dick Zandee
Publication Date:
10-2016
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Belgium and the Netherlands work closely together in defence. Both countries for example have a combined naval command; they also have single schools and maintenance facilities for their M-frigates and minehunters. Yet, the Belgian and Dutch defence industries are quite different. This report, issued by the Armaments Industry European Research Group (Ares), compares the defence industrial policies of both countries. Clingendael senior research fellow Dick Zandee has contributed to the report by writing the sections on the Netherlands.
Topic:
International Relations, Defense Policy, International Security, and Military Affairs
Political Geography:
Belgium and Netherlands

8573. Implications of Mega Free Trade Agreements for Asian Regional Integration and RCEP Negotiation

Author:
Fukunari Kimura and Lurong Chen
Publication Date:
03-2016
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
As mega free trade agreements (FTAs) are reshaping the rules of global governance, there is urgency for member states of the Association of Southeast Asian Nations (ASEAN) to take proper actions in response to the changing world economic order. On one hand, they should closely observe the progress of negotiations and follow up the issues that are under discussion in mega FTAs. On the other hand, they have to accelerate the pace in concluding the negotiations of the Regional Comprehensive Economic Partnership (RCEP).
Topic:
Economics, International Trade and Finance, and Global Political Economy
Political Geography:
Southeast Asia and Global Focus

8574. TPP, IPR Protection, and Their Implications for Emerging Asian Economies

Author:
Fukunari Kimura, Lurong Chen, Maura Ada Iliuteanu, Shimpei Yamamoto, and Masahito Ambashi
Publication Date:
04-2016
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Intellectual property rights (IPR) protection is essential for economic growth, innovation, and competitiveness. As the global economy is increasingly organised within global value chains, disciplining and enforcing IPR in a coherent manner internationally has become a critical issue in the 21st century trade system. The Trans-Pacific Partnership (TPP) agreement flags America's achievement in setting new standards on international IPR enforcement under a plurilateral framework that involves countries from Asia-Pacific. Yet such standards run the risk of becoming the new norm at the international level. Reaching agreement on the text of the TPP signals emerging Asian economies' heightened commitment to IPR enforcement. Some factors that policymakers may want to consider include the following: Efficient IPR protection at the domestic level is integral to efforts that facilitate technology adoption and stimulate incremental innovations. It is crucial to increase public awareness of intellectual property (IP) in general and its associated rights in particular. IP laws and regulations must at least meet the requirements of the Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS) and always aim for higher-level standards. IPR disciplines must be binding and practically enforceable. Asian countries should actively participate in global IPR rule-making. The abundance and quality of human capital will affect not only the level of invention and other innovative activities but also the efficiency of IPR enforcemen
Topic:
Emerging Markets, International Trade and Finance, and Global Political Economy
Political Geography:
Southeast Asia and Global Focus

8575. Power Grid Interconnections in East Asia: Investment in Several Key Projects Are Well Justified

Author:
Yanfei Li
Publication Date:
01-2016
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The recent ERIA report on 'Effective Power Infrastructure Investment through Power Grid Interconnections in East Asia' aims to support existing initiatives--the ASEAN Power Grid and Greater Mekong Subregion Power Master Plan--by quantitatively showing the possible economic and environmental benefits of such power grid interconnections. The study team selected specific candidate routes of cross-border transmission lines for further examination. They carried out the preliminary project planning and per kilowatt-hour cost estimation for the selected cross-border lines. The estimated results indicate that although these are capital-intensive projects, attainable benefits seem to be large enough to justify the investment well.
Topic:
Economics, Climate Finance, and Business
Political Geography:
Southeast Asia

8576. Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers

Author:
Yanfei Li and Shigeru Kimura
Publication Date:
12-2016
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The research is divided into four interdependent research clusters. Clusters 1 and 2 apply case studies on the BIMP countries (Brunei-Indonesia-Malaysia-Philippines) using different methods. Cluster 1, led by the Institute of Energy Economics, Japan, conducts dynamic linear programming model to simulate the development of power infrastructure, interconnection, and exchange of power in this subregion of ASEAN. It emphasises the economic rationale and feasibility of electricity market integration in the region. Cluster 2, led by the Brunei National Energy Research Institute, focuses on the regulatory, institutional, and technical barriers in BIMP, and develops a road map to solve these issues. This study thus gives some insight regarding regional specific barriers or issues for other regions based on an established understanding of the common issues in principle from previous studies. Cluster 3 is conducted jointly by the Economic Research Institute for ASEAN and East Asia and the Energy Research Institute at Nanyang Technological University. The study mainly refers to the Nordic and European cases of electricity market integration and analyses both their business models and overall market design for grid interconnection and cross-border trading of electricity. In doing so, the study eventually tries to deliver implications on the possible business model and market design for ASEAN. The Cluster 4 study, carried out by a researcher from the University of Western Australia, discusses political and institutional barriers to the formation of an integrated ASEAN electricity market and derives several practical strategies in addressing such barriers as policy implications.
Topic:
Economics, International Trade and Finance, and Business
Political Geography:
Southeast Asia

8577. Indonesia and China: Friends or Foes? Quality Competition and Firm Productivity

Author:
Yan Lili Ing, Miaojie Yu, and Rui Zhang
Publication Date:
12-2016
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
We define and measure "firm-product-destination-year-specific export quality" and investigate how quality competition from China affects Indonesian firm productivity in the domestic and export markets. Our results suggest that an increase in Chinese exported product quality by 10 percent will increase the productivity of Indonesian firms by 0.4 - 0.5 percent in Indonesia's domestic market, and increase Indonesian exporters' productivity by 2 percent in the export market. Where we limit our sample to exporters only, an increase in Chinese exported product quality will increase Indonesian firm productivity in the export market, but not in the domestic market. Our findings broaden the horizon through which firms could benefit from opening up to trade.
Topic:
Economics, International Political Economy, and International Trade and Finance
Political Geography:
Southeast Asia

8578. Financial Reforms in Myanmar and Japan's Engagement

Author:
Tomoo Kikuch and Takehiro Masumoto
Publication Date:
11-2016
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Since 2011, under the Thein Sein government, Myanmar has started to build financial institutions almost from scratch. Japan has played a leading role in this transition, writing off debt, opening the Yangon Stock Exchange, vying for the entry of Japanese banks, and laying out finance-related laws. As in other Southeast Asian countries, Myanmar's oligopolistic economic structure and colonial past present considerable challenges. There is a rich literature on the relationship between well-functioning financial institutions and economic growth, but the causality of this relationship remains inconclusive. This paper examines the preconditions for financial institutions to be a vehicle for Myanmar's development.
Topic:
International Trade and Finance, Finance, and Financial Markets
Political Geography:
Japan and Myanmar

8579. Economic Impact of Removing Energy Subsidies in Malaysia

Author:
Shigeru Kimura
Publication Date:
10-2016
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The share of demand for fossil-fuel based energy (i.e. coal and oil) in Malaysia will remain the largest in 2035. This significant demand is largely driven by the stable economic growth as well as the energy prices that are kept low by its energy subsidy policy across sectors. While it is widely acknowledged that subsidy encourages overconsumption and inefficient resource allocation, subsidy reforms will bring structural changes at all economic levels. Therefore, the effects of fuel subsidy removal need to be simulated to help government formulate mitigating measures to cushion the effects on most affected sectors. This research is divided into two parts: the first part estimates the price impact on industry subsectors as an offshoot of energy subsidies removal by applying 2010 Malaysian Input-Output Table; the second part measures the economic impact of removing energy subsidies using a Malaysian macroeconomic model.
Topic:
Energy Policy, International Political Economy, and Climate Finance
Political Geography:
Malaysia

8580. Joint Study for Liquefied Natural Gas Market

Author:
Ken Koyama, Ichiro Kutani, and Yanfei Li
Publication Date:
10-2016
Content Type:
Research Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Energy demand in many East Asia Summit countries is on an upward trend, thus making the role of natural gas in energy supply increasingly important from various aspects. Yet the market for liquefied natural gas (LNG) is in transition in terms of geographical and quantitative expansion, diversification of price formations, and lower oil and gas prices. In order to balance benefits between importers and exporters and to find workable solutions for developing a sustainable LNG market in various energy situations in importing and exporting countries, the LNG market players and policymakers are encouraged to enhance their efforts to create a more flexible, transparent, and sustainable LNG market in Asia. Whereas the private sector is mainly responsible for commercial deals, the public sector is encouraged to support in improving business environment to develop a better-functioning LNG market especially in terms of flexibility, price formation, and gas supply security, and in securing necessary investments.
Topic:
Energy Policy and International Trade and Finance
Political Geography:
Southeast Asia