Host-site Support, Foreign Ownership, Regional Linkages and Technological Capabilities: Evidence from Automotive Firms in Indonesia

ERIA-DP-2015-08

ERIA Discussion Paper Series

Host-site Support, Foreign Ownership,

Regional Linkages and Technological

Capabilities: Evidence from Automotive Firms

in Indonesia*

Rajah RASIAH

Development Studies Department, University of Malaya

Rafat Beigpoor SHAHRIVAR

Development Studies Department, University of Malaya

Abdusy Syakur AMIN

Faculty of Engineering, University of Pasundan

February 2015

Abstract: This study analyses the influence of host-site institutional support, foreign

ownership and regional production linkages on firm-level technological capabilities

using data from automotive firms in Indonesia. The results show that host-site

institutional support and foreign ownership are positively correlated with

technological capabilities. In addition, regional linkages show a significant and

positive link on technological capabilities. However, regional linkages and foreign

ownership explain more strongly technological capabilities than host-site

institutional support in automotive firms in Indonesia. This evidence suggests that

the supporting high tech environment require further strengthening to stimulate

higher technological capabilities in the automotive industry in Indonesia.

Keywords: automotive firms, institutional support, Indonesia, regional linkages,

technological capabilities

JEL Classification: L62, L22, L14, O31

* : We acknowledge financial support from the Economic Research Institute for ASEAN and East

Asia (ERIA). We are grateful to useful comments from to referees. The paper is under review for

a special issue of Asia Pacific Business Review (www.tandfonline.com/fapb). Corresponding author, email: [email protected]

1

1. Introduction

The automotive industry is a key contributor to national economic growth,

particularly in large industrialised countries. The global automotive industry produced

approximately 70 million units each year since the turn of the millennium (Ulengin,

nsel, Aktas, & Kabak, 2010). While the United States, Japan and Germany are the

major automobile producers of national brands in the world, others such as Korea,

China and India have increasingly become important.

A number of developing countries introduced policies to promote automotive

assembly as an engine of industrialization, as well as, to save foreign exchange through

import-substitution. Indonesia is no different as through import substitution foreign

assemblers were attracted to the country. A localization policy was continued strongly

during Suhartos long presidency that stimulated even the introduction of Indonesia-

based models by foreign firms, such as Toyota. The introduction of regional

production strategies and a strong domestic market helped Indonesia sustain growth in

automobile production despite the liberalization that followed as President Habibie

succeeded President Suharto.

The growing technological capabilities enjoyed by automotive firms in Indonesia

was identified by Rasiah and Amin (2010). It will be interesting to identify the drivers

of such technological capabilities. Hence, this study seeks to examine the influence of

host-site institutional support, foreign ownership and regional linkages on firm-level

technological capabilities in the automotive industry in Indonesia. The rest of the essay

is organized as follows. The next section discusses the development of the industry in

Indonesia followed by the theoretical considerations and methodology. The

subsequent section analyses the results. The final section presents the conclusions.

2. The Automotive Industry in Indonesia

The development of the automotive sector in Indonesia has certainly benefited

from a reformist agenda over the past decade, although still shaped to a degree by the

legacy of government policies dating back to the 1970s. At that time, the government

2

introduced strict controls over the domestic automotive industry, including the banning

of imported CBU (completely built up) vehicles. Foreign companies were also

prevented from investing directly in assembly and distribution activities within the

industry. Since then, Indonesia has become a more welcoming place for foreign

automotive manufacturers thanks to the removal of foreign ownership restrictions and

other deregulation measures during the 1990s (KPMG, 2014).

In 1983, government attempted to rationalize the automotive industry by requiring

car assembler to reduce the number of car brands and models they assembled to

achieve economies of scale. However this regulation was not implemented effectively

because of strong rejection from vested interests in the industry. Another decree was

stipulated in 1983 on compulsory use of locally made components. However this

decree was not successful due to the lack of technology, capital and skills in technical

areas of the small and medium scale manufacturers. In 1993 government terminated

the deletion program and replaced it with the Incentive program. Indonesian

government introduced harmonized system under WTO system in 1999. In this

harmonized system, the local content programs were removed and Indonesia signed

the trade-related investment measures (TRIMS).

Automotive production has developed rapidly in Indonesia since 1980 with the

number of car and motorcycle parts producers expanding by three folds and four folds

respectively. Although Indonesias prominence as an automotive player is low in

comparison to some of its neighbours, the potential market for automotive producers

and importers in the country is expected to expand. Growth is expected to be driven

by an expanding middle class and a broadening economic base.

3. Theoretical Considerations

Technological capabilities (TC) form the main concept of this paper, and the key

relationships that will be examined in this article are TC, and host-site institutional

support (HI) and foreign ownership (FO), and TC and regional linkages (RL). The

influence of the control variables of age and size on the dependent variables is also

examined.

3

3.1. Institutional Support and Technological Capabilities

The importance of institutional support to stimulate innovation was first

articulated by industrial policy exponents (Smith, 1776; Hamilton, 1791; List, 1885).

North (1990) referred to institutions as the rules of the game and organizations and

entrepreneurs as the players. Williamson (1985) associated institutions with

governing structures that mould economic activity, like a nations financial

institutions, or the way firms tend to be organized and managed. The fundamental

difference in the definition of institutions by evolutionary economists is the specificity

of a blend of institutions effecting technical change, which is conditioned by the

location, industry-type and timing of strategies by firms and organizations (Nelson,

2008).

Host-site institutions and meso organizations associated with generating and

supporting the appropriation of knowledge are critical to stimulate firm-level

technological upgrading. In the developed countries, including in Korea, Taiwan and

Singapore, the government is a major financier of public goods, such as R&D,

including knowledge generation through the provision of R&D grants (OECD, 2013).

Lall (2001) was to assert that economies that failed to develop their innovation

capabilities became losers in the globalization process.

Where foreign firms have been instrumental in galvanizing technology transfer to

national firms, they are unlikely to relocate frontier R&D activities at host sites unless

it involves the exploration or development of rare host-site resources, or when the host

site is endowed with strong research-based universities. Also, there is evidence of

multinationals undertaking R&D in pharmaceuticals in South Africa owing to the

availability of rare flora and human capital, and off-shoring of electronics R&D to

benefit from strong high tech support institutions in Taiwan (Ernst, 2006). These

developments obviously depend on the motives of the multinationals as well as the

nature of activity they are engaged in (see Cantwell and Mudambi, 2001). Also, in the

integrated circuits industry there is only evidence of MNCs frontier R&D activities

being relocated at host-sites endowed with strong research universities, e.g. Samsung

Semiconductor and Taiwan Semiconductor Manufacturing Company in the United

States (Gartner, 2013).

4

Although employees in firms gain significant parts of their knowledge through

training and learning by doing in firms (Marshall, 1890; Penrose, 1959), universities

and R&D laboratories are important silos of knowledge that firms access through

hiring graduates, contract training projects and R&D activities to generate new

products and processes. However, as the evolutionary economists have argued both

market and non-market institutions are equally important in explaining the drivers of

university-industry R&D collaboration (Nelson and Winter 1982; Nelson 2008).

Especially in high tech industries firms rely extensively on both the hiring of

competent engineers and scientists to undertake R&D activities and to also work

jointly with universities and R&D laboratories to carry out commercialization (Nelson,

1993).

While it is important that host-site organizations participate in generating

knowledge that is essential for firms, it is also critical that they are cohesively

integrated with firms (Mytelka, 2001). Nelson (2008), Lundvall (1988) and Edquist

(2004) discussed the importance of interdependence and interactions between

economic agents. While this is a broad concept that address all the economic agents,

for the purpose of measurement in this article we limit it to coordination links between

high tech organizations and firms. In the case of Taiwan, it will be important to capture

the links between firms and the high tech organizations. Connectivity and coordination

is critical for knowledge flows- beyond simply codified information that markets can

coordinate. If firms are to upgrade to participate at the frontier of product technologies,

then technological innovation that is produced by R&D laboratories will become

important. Basic research is generally done in universities and developmental research

that is undertaken in-house or at publicly financed laboratories will be important. Also,

training is a critical pillar in institutional support that is important for automotive firms

to strengthen their technological capabilities. Hence, although Indonesia is still a

developing economy the link between host-site institutions and firm-level

technological capabilities is still expected to be positive and statistically significant.

5

3.2. Technological Capabilities and Regional Linkages

The rapid expansion of East and Southeast Asia has attracted the formulation of

regional theories on agglomeration of production. Regional trade and investment

linkages in East Asia can be first traced to Akamatsu (1962).

Akamatsu (1962) had pioneered the first regional trade and investment linkages

theory using the flight of a flock of geese to explain economic growth and structural

change (see Rasiah, Kimura and Oum, fortcoming). This regional model explains the

movement of investment and trade sequentially with wedges of geese following the

leading goose, i.e. Japan. For a while it appeared a powerful theory as the following

Korean and Taiwanese geese emerged. However, the supplanting of Japanese lead

firms by Korean and Taiwanese firms undermined its usefulness. Nevertheless, the

basic underlying rationale of regional economic integration and its effect on

integrating economies is still relevant today.

The specificity of the automotive industry has also encouraged regional

specialization among the major economies so that cars are still assembled in the

Southeast Asian countries of Indonesia, Malaysia, Philippines, Thailand and Vietnam.

Automotive firms have not only shown a tendency to assemble particular models in

particular locations, but also to source particular components and completely knocked

down parts from particular locations (Rasiah, Kimura and Sothea, 2015). The

introduction of the ASEAN Industrial Cooperation (AICO) Scheme in 1996 has

stimulated such inter-border complementation initiatives especially among automotive

firms (ASEAN, 2000).

Although technological advancement and increasing liberalization have made

global trade and investment swifter and cheaper, geographical distance have continued

to play an important role in the automotive industry. Continuous economic integration

in the ASEAN Free Trade Area (AFTA), and the greater ASEAN members of China,

Japan, South Korea and Taiwan has been driven considerably through cooperation

from all ASEAN member countries. Hence, it is worth testing if growing RL is

reflected in the TC of automotive firms among countries in the lower rungs of the

technology ladder, such as, Indonesia.

6

3.3. FDI and Technological Capabilities

The theory of foreign direct investment (FDI) posits that multinationals enjoy asset

specific (tangible and intangible) advantages over local firms (see Hymer, 1976;

Dunning, 1958, 1974). Whereas the portfolio theory of FDI of Hymer (1976)

emphasized ownership and host-site advantages that explain international operations,

Dunning emphasized ownership, localization and internationalization (OLI) elements

in the relocation process. Access to superior resources in parent plants abroad is one

factor considered to explain this advantage. The relocation of such an activity to

developing economies allows multinationals to internalize such resources. In contrast

to Vernon (1966; 1971) argument that MNCs would retain production of new products

at parent sites, Helleiner (1973) showed evidence of the decomposition of production

especially in light manufacturing to suggest that MNCs instantaneously relocate

particular production components abroad without waiting for them to mature.

However, there has remained a doubt that the most novel aspects of R&D will be

relocated abroad (see Amsden and Tschang, 2003). Nevertheless as Caves (1974) had

argued, MNCs bring the potential to provide competition, technology diffusion, trade

linkages and demonstration effects on national firms.

Largely a consequence of competition between firms and national policies to

stimulate supplier linkages, there has been growing participation of MNCs in the

development of national suppliers, as well as, R&D off-shoring in developing

economies (see Dunning, 1994; Cantwell, 1995; Prasada, 2000; Hobday, 1996; Rasiah,

1994, 2004; UNCTAD, 2005; Ernst, 2006). Hence, is likely that foreign MNCs may

show higher technological capabilities then national firms.

4. Methodology and Data

The analytic framework focuses directly on the statistical relationship between

technological capability and high tech institutional support, and technological

capability and regional production linkages. The dependent variable examined in this

article are technological capability. In the first model, the focus is on examining the

influence of host-site institutional support on technological capabilities, while in the

7

second the focus is on the influence of regional production linkages on technological

capability.

Technological capability (TC) was estimated using the following 6 proxies:

TC - f (CIQT, AC, PD, RD, TE, PAT)

Where CIQT refers to cutting-edge inventory and quality control techniques

(CIQT) of statistical process control (SPC), quality control circles (QCC), any one of

the international standards organization (ISO) series, total preventive maintenance

(TPM), integrated materials resource planning (MRP2) and total quality management

(TQM). A score of 1 was added for presence of each of these techniques; AC refers to

the presence of adaptive capabilities (AC) on processes, layouts, machinery and

products. A score of 1 was added for the presence of each of them; PD refers to the

presence of product development (PD) which is counted as 1 if it exists and 0

otherwise; RD refers to R&D expenditure as a share of sales; TE refers to training

expenditure as a share of payroll; PAT refers to the number of patents taken in the

United States.

High tech institutional (HI) support was estimated using the following 5 proxies:

HI - f (RDG, TTI, RU, RDSE, IRD)

Where RDG refers to R&D grants enjoyed by the firm from the host government

(Yes=1; No=0); TTI refers to Likert scale rating (1-5) of the presence of technical

strong training institutions, RU refers to Likert scale rating (1-5) of the presence of

research universities; RDSE refers to Likert scale rating (1-5) of the presence of strong

supply of R&D scientists and engineers; IRD refers to Likert scale rating (1, 5) of the

presence of incentive for R&D activities.

Regional production linkages (RL) is also used as an explanatory variable. RL were

estimated using the following formula:

RL = RS/TS + RP/TP

8

Where RS/TS refers to percentage share of intermediate sales in total sales to firms in

East and Southeast Asia; RP/TP percentage share of intermediate purchases in total

purchases from East and Southeast Asia.

Foreign ownership (FO), Size (S) and age (A) were used as the control variables,

and were measured as follows:

FO = foreign equity in total equity.

A = age of the firm

S = workforce

Tobit regression model was used to investigate the relationship between TC and HI;

and TC and RL controlling for FO, size and age using the following equation:

TC = + 1 HI + 2 FO + 3 A + (1) TC = + 1 RL + 2 S + 3 A + (2)

A stratified random sampling procedure based on size was adopted to gather data

from the automotive firms in Indonesia. The survey questionnaire was sent to

automotive firms in 2013. Although data on employment, sales, exports, R&D

expenditure and training expenditure were drawn from the years 2000, 2006 and 2011,

the analysis is confined to 2011. The empirical analysis is based on 93 automotive

firms, which amounted to 68.9 percent of the population of automotive firms in

Indonesia.

5. Results and Analysis

First, the descriptive statistics of the dependent and independent variables are

presented.

The mean and median of the variable TC are 12.06 and 11.90 respectively. The

standard deviation for TC is 2.09 respectively. The Jarque-Bera statistics show that the

distribution for the variables TC, HI, FO, S and A are normal (p>0.05).

The mean and medians of the logarithm of HI are 0.85 and 0.84 with the highest

score achieved is 0.95, while the lowest is 0.77. The firms in the sample show mean

9

and median of the logarithm of ages 3.10 and 3.13 years respectively with a minimum

age of 1.94 years and a maximum age of 3.71 years. The mean and median of foreign

ownership are 0.67 and 0.66 with maximum and minimum of 0.89 and 0.52. The mean

and median of the logarithm of S are 6.24 and 6.13 respectively. The standard

deviation for S is 1.00 with maximum and minimum of 9.00 and 4.00.

Before analysing the relationship between technological capabilities and

institutional support, and technological capabilities and regional production linkages

we checked for heteroscedasticity problems using the White test as a cross-sectional

regression model is deployed here. Table 1 and 2 show the results. The p-value of F-

statistic for first equation and second equation are 0.2639 and 0.8030, which fail to

reject the null hypothesis, and hence, they do not suffer from hoteroskedasticity

problem.

Table 1: Equation (1): White test for Heteroskedasticity

F-statistic 1.312156 Prob. F (9,37) 0.2639

Obs*R2 11.37162 Prob. 2 (9) 0.2511 Scale exp. SS 7.448134 Prob. 2 (9) 0.5906 Source: Authors (2014).

Table 2: Equation (2): White test for Heteroskedasticity

F-statistic 0.587438 Prob. F(9,69) 0.8030

Obs*R2 5.622367 Prob. 2 (9) 0.7770 Scale exp. SS 4.744077 Prob. 2 (9) 0.8560 Source: Authors (2014).

For testing the multicollinearity problem in models among independent variables,

the auxiliary regressions of independent variables are estimated to calculate their

variance inflation factor (VIF). The VIF is calculated for each independent variable by

doing a linear regression of that predictor on all the other predictors, and then obtaining

the R2 from that regression. We estimated The VIF in two ways by using formula (1/

(1-R2)) and Eviews. Both results in Table 3 and 4 indicate that all VIFs are less than

5, thereby confirming the absence of multicollinearity problems in both equations.

10

Table 3: Variance Inflation Factor for Equation 1

Variable R2 VIF

HI 0.030746 1.031721

FO 0.064518 1.068968

A 0.057801 1.061347

Source: Authors (2014)

Table 4: Variance Inflation Factor for Equation 2

Variable R2 VIF

RL 0.013871 1.014066111

S 0.084902 1.092779134

A 0.074911 1.080977074

Source: Authors (2014).

In this section, we estimated influence of institutional support on technological

capabilities with control variables of age and foreign ownership by using Tobit

regression. Table 5 presents the results. The results show a statistically significant

relationship between technological capability and institutional support (at 10 percent

level), and they are positive. Also, the relationship between FO and TC was also

statistically significant and positive (at 5 percent level). Age was not significant. The

constant is also insignificant, suggesting that the equation does not suffer from

endogeneity problem. While institutional support has been important foreign

ownership enjoyed stronger relationship with technological capabilities.

Table 5: Firm-level Technological Capability and Host-site High Tech

Infrastructure, 2012

Dependent Variable: TC

Method: ML - Censored Normal (TOBIT) (Quadratic hill climbing)

Covariance matrix computed using second derivatives

Variable Coefficient Std. Error z-Statistic Prob.

C -2.810081 5.107501 -0.550187 0.5822

HI 10.41989 5.706882 1.825847 0.0679

A 0.775880 0.718136 1.080409 0.2800

FO 5.702213 2.620115 2.176321 0.0295

LL -99.320

Source: computed from Indonesia survey (2014).

Table 6 shows that the relationship between RL and TC is significant. The Tobit

regression shows that RL is positively correlated with TC at 5 percent significance

11

level. Regional trade linkages have been important in stimulating firm-level

technological capabilities among automotive firms in Indonesia. In addition, the

influence of Size on TC is significant and positive but age is not significant,

demonstrating the importance of scale in supporting technological capabilities. These

results are robust as they do not suffer from endogeneity problems since the constant

is statistically insignificant.

Table 6: Technological Capability and Regional linkages, Automotive Firms,

Indonesia, 2012

Dependent Variable: TC

Method: ML - Censored Normal (TOBIT) (BHHH)

QML (Huber/White) standard errors & covariance

Variable Coefficient Std. Error z-Statistic Prob.

C 0.213685 0.594591 0.359381 0.7193

RL 6.662869 2.130318 3.127641 0.0018

A -0.002088 0.047927 -0.043560 0.9653

S 0.061945 0.022737 2.724350 0.0064

LL 33.85814

Source: computed from Indonesia survey (2014).

Overall, RL showed the highest relationship (at 1 percent) with technological

capabilities among automotive firms in Indonesia compared to foreign ownership (5

percent) and host-site institutional support (at 10 percent). The results show that while

all three explanatory variables of RL, FO and HI have been important in stimulating

technological capabilities among automotive firms, the relationship is strongest with

RL followed by FO and HI.

6. Conclusions

The statistical results show that the relationship between HI and TC is significant

and positive suggesting that the provision of training institutes, R&D labs and

universities, and R&D scientists and engineers has helped strengthened firm-level

technological capabilities in the automotive firms in Indonesia. FO and RL are also

important as it is positively correlated with TC. The results support a strong role for

12

host-site institutional support as essential to stimulate firm-level technological

upgrading. However, regional linkages were the strongest correlated with and

technological capabilities followed by foreign ownership. The results show that firm-

level technological capabilities in automotive firms in Indonesia are influenced by

regional trade linkages and foreign ownership than by host-site supporting institutions.

The results also suggest that foreign automotive firms seeking to access regional

markets for sales, as well as, suppliers have upgraded their technological capabilities

at host-sites through both buyer-supplier trading links in East Asia, as well as, in-house

development. While the positive role of regional trade both imports and exports

within East Asia has been important, the government should strengthen high tech

institutional support through strengthening of automotive-related training, research at

universities and public R&D labs and to improve the incentive system to stimulate

further upgrading of technological capabilities among automotive firms in Indonesia.

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2014-22 Yanrui WU Deregulation, Competition, and Market

Integration in Chinas Electricity Sector

Nov

2014

2014-21 Yanfei LI and Youngho

CHANG

Infrastructure Investments for Power Trade and

Transmission in ASEAN+2: Costs, Benefits,

Long-Term Contracts, and Prioritised

Development

Nov

2014

2014-20

Yu SHENG, Yanrui

WU, Xunpeng SHI,

Dandan ZHANG

Market Integration and Energy Trade Efficiency:

An Application of Malmqviat Index to Analyse

Multi-Product Trade

Nov

2014

2014-19

Andindya

BHATTACHARYA

and Tania

BHATTACHARYA

ASEAN-India Gas Cooperation: Redifining

Indias Look East Policy with Myanmar

Nov

2014

2014-18 Olivier CADOT, Lili

Yan ING How Restrictive Are ASEANs RoO?

Sep

2014

2014-17 Sadayuki TAKII Import Penetration, Export Orientation, and Plant

Size in Indonesian Manufacturing

July

2014

2014-16

Tomoko INUI, Keiko

ITO, and Daisuke

MIYAKAWA

Japanese Small and Medium-Sized Enterprises

Export Decisions: The Role of Overseas Market

Information

July

2014

2014-15 Han PHOUMIN and

Fukunari KIMURA

Trade-off Relationship between Energy

Intensity-thus energy demand- and Income Level:

Empirical Evidence and Policy Implications for

ASEAN and East Asia Countries

June

2014

2014-14 Cassey LEE The Exporting and Productivity Nexus: Does May

17


Firm Size Matter? 2014

2014-13 Yifan ZHANG Productivity Evolution of Chinese large and

Small Firms in the Era of Globalisation

May

2014

2014-12

Valria SMEETS,

Sharon

TRAIBERMAN,

Frederic WARZYNSKI

Offshoring and the Shortening of the Quality

Ladder:Evidence from Danish Apparel

May

2014

2014-11 Inkyo CHEONG Koreas Policy Package for Enhancing its FTA

Utilization and Implications for Koreas Policy

May

2014

2014-10

Sothea OUM, Dionisius NARJOKO, and Charles HARVIE

Constraints, Determinants of SME Innovation,

and the Role of Government Support

May

2014

2014-09 Christopher PARSONS and Pierre-Louis Vzina

Migrant Networks and Trade: The Vietnamese

Boat People as a Natural Experiment

May

2014

2014-08

Kazunobu HAYAKAWA and Toshiyuki MATSUURA

Dynamic Tow-way Relationship between

Exporting and Importing: Evidence from Japan

May

2014

2014-07 DOAN Thi Thanh Ha and Kozo KIYOTA

Firm-level Evidence on Productivity

Differentials and Turnover in Vietnamese

Manufacturing

Apr

2014

2014-06 Larry QIU and Miaojie YU

Multiproduct Firms, Export Product Scope, and

Trade Liberalization: The Role of Managerial

Efficiency

Apr

2014

2014-05 Han PHOUMIN and Shigeru KIMURA

Analysis on Price Elasticity of Energy Demand

in East Asia: Empirical Evidence and Policy

Implications for ASEAN and East Asia

Apr

2014

2014-04 Youngho CHANG and Yanfei LI

Non-renewable Resources in Asian Economies:

Perspectives of Availability, Applicability,

Acceptability, and Affordability

Feb

2014

2014-03 Yasuyuki SAWADA and Fauziah ZEN

Disaster Management in ASEAN Jan

2014

2014-02 Cassey LEE Competition Law Enforcement in Malaysia Jan

2014

2014-01 Rizal SUKMA ASEAN Beyond 2015: The Imperatives for

Further Institutional Changes

Jan

2014

18


2013-38

Toshihiro OKUBO, Fukunari KIMURA, Nozomu TESHIMA

Asian Fragmentation in the Global Financial

Crisis

Dec

2013

2013-37 Xunpeng SHI and Cecilya MALIK

Assessment of ASEAN Energy Cooperation

within the ASEAN Economic Community

Dec

2013

2013-36

Tereso S. TULLAO, Jr. And Christopher James CABUAY

Eduction and Human Capital Development to

Strengthen R&D Capacity in the ASEAN

Dec

2013

2013-35 Paul A. RASCHKY

Estimating the Effects of West Sumatra Public

Asset Insurance Program on Short-Term

Recovery after the September 2009 Earthquake

Dec

2013

2013-34

Nipon POAPONSAKORN and Pitsom MEETHOM

Impact of the 2011 Floods, and Food

Management in Thailand

Nov

2013

2013-33 Mitsuyo ANDO Development and Resructuring of Regional

Production/Distribution Networks in East Asia

Nov

2013

2013-32 Mitsuyo ANDO and Fukunari KIMURA

Evolution of Machinery Production Networks:

Linkage of North America with East Asia?

Nov

2013

2013-31 Mitsuyo ANDO and Fukunari KIMURA

What are the Opportunities and Challenges for

ASEAN?

Nov

2013

2013-30 Simon PEETMAN Standards Harmonisation in ASEAN: Progress,

Challenges and Moving Beyond 2015

Nov

2013

2013-29

Jonathan KOH and Andrea Feldman MOWERMAN

Towards a Truly Seamless Single Windows and

Trade Facilitation Regime in ASEAN Beyond

2015

Nov

2013

2013-28 Rajah RASIAH

Stimulating Innovation in ASEAN Institutional

Support, R&D Activity and Intelletual Property

Rights

Nov

2013

2013-27 Maria Monica WIHARDJA

Financial Integration Challenges in ASEAN

beyond 2015

Nov

2013

2013-26 Tomohiro MACHIKITA and Yasushi UEKI

Who Disseminates Technology to Whom, How,

and Why: Evidence from Buyer-Seller Business

Networks

Nov

2013

2013-25 Fukunari KIMURA

Reconstructing the Concept of Single Market a

Production Base for ASEAN beyond 2015

Oct

2013

2013-24 Olivier CADOT Ernawati MUNADI

Streamlining NTMs in ASEAN:

The Way Forward

Oct

2013

19


Lili Yan ING

2013-23

Charles HARVIE,

Dionisius NARJOKO,

Sothea OUM

Small and Medium Enterprises Access to

Finance: Evidence from Selected Asian

Economies

Oct

2013

2013-22 Alan Khee-Jin TAN Toward a Single Aviation Market in ASEAN:

Regulatory Reform and Industry Challenges

Oct

2013

2013-21

Hisanobu SHISHIDO,

Shintaro SUGIYAMA,

Fauziah ZEN

Moving MPAC Forward: Strengthening

Public-Private Partnership, Improving Project

Portfolio and in Search of Practical Financing

Schemes

Oct

2013

2013-20

Barry DESKER, Mely

CABALLERO-ANTH

ONY, Paul TENG

Thought/Issues Paper on ASEAN Food Security:

Towards a more Comprehensive Framework

Oct

2013

2013-19

Toshihiro KUDO,

Satoru KUMAGAI, So

UMEZAKI

Making Myanmar the Star Growth Performer in

ASEAN in the Next Decade: A Proposal of Five

Growth Strategies

Sep

2013

2013-18 Ruperto MAJUCA

Managing Economic Shocks and

Macroeconomic Coordination in an Integrated

Region: ASEAN Beyond 2015

Sep

2013

2013-17 Cassy LEE and Yoshifumi

FUKUNAGA

Competition Policy Challenges of Single Market

and Production Base

Sep

2013

2013-16 Simon TAY Growing an ASEAN Voice? : A Common

Platform in Global and Regional Governance

Sep

2013

2013-15 Danilo C. ISRAEL and

Roehlano M. BRIONES

Impacts of Natural Disasters on Agriculture, Food

Security, and Natural Resources and Environment in

the Philippines

Aug

2013

2013-14 Allen Yu-Hung LAI and

Seck L. TAN

Impact of Disasters and Disaster Risk Management in

Singapore: A Case Study of Singapores Experience

in Fighting the SARS Epidemic

Aug

2013

2013-13 Brent LAYTON Impact of Natural Disasters on Production Networks

and Urbanization in New Zealand

Aug

2013

2013-12 Mitsuyo ANDO Impact of Recent Crises and Disasters on Regional Aug

20


Production/Distribution Networks and Trade in Japan 2013

2013-11 Le Dang TRUNG Economic and Welfare Impacts of Disasters in East

Asia and Policy Responses: The Case of Vietnam

Aug

2013

2013-10

Sann VATHANA, Sothea

OUM, Ponhrith KAN,

Colas CHERVIER

Impact of Disasters and Role of Social Protection in

Natural Disaster Risk Management in Cambodia

Aug

2013

2013-09

Sommarat CHANTARAT,

Krirk PANNANGPETCH,

Nattapong

PUTTANAPONG, Preesan

RAKWATIN, and Thanasin

TANOMPONGPHANDH

Index-Based Risk Financing and Development of

Natural Disaster Insurance Programs in Developing

Asian Countries

Aug

2013

2013-08 Ikumo ISONO and Satoru

KUMAGAI

Long-run Economic Impacts of Thai Flooding:

Geographical Simulation Analysis

July

2013

2013-07 Yoshifumi FUKUNAGA

and Hikaru ISHIDO

Assessing the Progress of Services Liberalization in

the ASEAN-China Free Trade Area (ACFTA)

May

2013

2013-06

Ken ITAKURA, Yoshifumi

FUKUNAGA, and Ikumo

ISONO

A CGE Study of Economic Impact of Accession of

Hong Kong to ASEAN-China Free Trade Agreement

May

2013

2013-05 Misa OKABE and Shujiro

URATA The Impact of AFTA on Intra-AFTA Trade

May

2013

2013-04 Kohei SHIINO How Far Will Hong Kongs Accession to ACFTA will

Impact on Trade in Goods?

May

2013

2013-03 Cassey LEE and Yoshifumi

FUKUNAGA

ASEAN Regional Cooperation on Competition

Policy

Apr

2013

2013-02 Yoshifumi FUKUNAGA

and Ikumo ISONO

Taking ASEAN+1 FTAs towards the RCEP:

A Mapping Study

Jan

2013

2013-01 Ken ITAKURA

Impact of Liberalization and Improved Connectivity

and Facilitation in ASEAN for the ASEAN Economic

Community

Jan

2013

2012-17 Sun XUEGONG, Guo

LIYAN, Zeng ZHENG

Market Entry Barriers for FDI and Private Investors:

Lessons from Chinas Electricity Market

Aug

2012

21


2012-16 Yanrui WU Electricity Market Integration: Global Trends and

Implications for the EAS Region

Aug

2012

2012-15 Youngho CHANG, Yanfei

LI

Power Generation and Cross-border Grid Planning for

the Integrated ASEAN Electricity Market: A Dynamic

Linear Programming Model

Aug

2012

2012-14 Yanrui WU, Xunpeng SHI Economic Development, Energy Market Integration and

Energy Demand: Implications for East Asia

Aug

2012

2012-13

Joshua AIZENMAN,

Minsoo LEE, and

Donghyun PARK

The Relationship between Structural Change and

Inequality: A Conceptual Overview with Special

Reference to Developing Asia

July

2012

2012-12 Hyun-Hoon LEE, Minsoo

LEE, and Donghyun PARK

Growth Policy and Inequality in Developing Asia:

Lessons from Korea

July

2012

2012-11 Cassey LEE Knowledge Flows, Organization and Innovation:

Firm-Level Evidence from Malaysia

June

2012

2012-10

Jacques MAIRESSE, Pierre

MOHNEN, Yayun ZHAO,

and Feng ZHEN

Globalization, Innovation and Productivity in

Manufacturing Firms: A Study of Four Sectors of China

June

2012

2012-09 Ari KUNCORO

Globalization and Innovation in Indonesia: Evidence

from Micro-Data on Medium and Large Manufacturing

Establishments

June

2012

2012-08 Alfons PALANGKARAYA The Link between Innovation and Export: Evidence

from Australias Small and Medium Enterprises

June

2012

2012-07 Chin Hee HAHN and

Chang-Gyun PARK

Direction of Causality in Innovation-Exporting Linkage:

Evidence on Korean Manufacturing

June

2012

2012-06 Keiko ITO Source of Learning-by-Exporting Effects: Does

Exporting Promote Innovation?

June

2012

2012-05 Rafaelita M. ALDABA Trade Reforms, Competition, and Innovation in the

Philippines

June

2012

2012-04

Toshiyuki MATSUURA

and Kazunobu

HAYAKAWA

The Role of Trade Costs in FDI Strategy of

Heterogeneous Firms: Evidence from Japanese

Firm-level Data

June

2012

2012-03

Kazunobu HAYAKAWA,

Fukunari KIMURA, and

Hyun-Hoon LEE

How Does Country Risk Matter for Foreign Direct

Investment?

Feb

2012

22


2012-02

Ikumo ISONO, Satoru

KUMAGAI, Fukunari

KIMURA

Agglomeration and Dispersion in China and ASEAN:

A Geographical Simulation Analysis

Jan

2012

2012-01 Mitsuyo ANDO and

Fukunari KIMURA

How Did the Japanese Exports Respond to Two Crises

in the International Production Network?: The Global

Financial Crisis and the East Japan Earthquake

Jan

2012

2011-10 Tomohiro MACHIKITA

and Yasushi UEKI

Interactive Learning-driven Innovation in

Upstream-Downstream Relations: Evidence from

Mutual Exchanges of Engineers in Developing

Economies

Dec

2011

2011-09

Joseph D. ALBA, Wai-Mun

CHIA, and Donghyun

PARK

Foreign Output Shocks and Monetary Policy Regimes

in Small Open Economies: A DSGE Evaluation of East

Asia

Dec

2011


and Yasushi UEKI

Impacts of Incoming Knowledge on Product Innovation:

Econometric Case Studies of Technology Transfer of

Auto-related Industries in Developing Economies

Nov

2011

2011-07 Yanrui WU Gas Market Integration: Global Trends and Implications

for the EAS Region

Nov

2011

2011-06 Philip Andrews-SPEED Energy Market Integration in East Asia: A Regional

Public Goods Approach

Nov

2011

2011-05 Yu SHENG,

Xunpeng SHI

Energy Market Integration and Economic

Convergence: Implications for East Asia

Oct

2011

2011-04

Sang-Hyop LEE, Andrew

MASON, and Donghyun

PARK

Why Does Population Aging Matter So Much for

Asia? Population Aging, Economic Security and

Economic Growth in Asia

Aug

2011

2011-03 Xunpeng SHI,

Shinichi GOTO

Harmonizing Biodiesel Fuel Standards in East Asia:

Current Status, Challenges and the Way Forward

May

2011

2011-02 Hikari ISHIDO Liberalization of Trade in Services under ASEAN+n :

A Mapping Exercise

May

2011

2011-01

Kuo-I CHANG, Kazunobu

HAYAKAWA

Toshiyuki MATSUURA

Location Choice of Multinational Enterprises in

China: Comparison between Japan and Taiwan

Mar

2011

2010-11 Charles HARVIE,

Dionisius NARJOKO,

Firm Characteristic Determinants of SME

Participation in Production Networks

Oct

2010

23


Sothea OUM

2010-10 Mitsuyo ANDO Machinery Trade in East Asia, and the Global

Financial Crisis

Oct

2010


Ayako OBASHI

International Production Networks in Machinery

Industries: Structure and Its Evolution

Sep

2010

2010-08

Tomohiro MACHIKITA,

Shoichi MIYAHARA,

Masatsugu TSUJI, and

Yasushi UEKI

Detecting Effective Knowledge Sources in Product

Innovation: Evidence from Local Firms and

MNCs/JVs in Southeast Asia

Aug

2010

2010-07

Tomohiro MACHIKITA,

Masatsugu TSUJI, and

Yasushi UEKI

How ICTs Raise Manufacturing Performance:

Firm-level Evidence in Southeast Asia

Aug

2010

2010-06 Xunpeng SHI

Carbon Footprint Labeling Activities in the East Asia

Summit Region: Spillover Effects to Less Developed

Countries

July

2010

2010-05

Kazunobu HAYAKAWA,


Tomohiro MACHIKITA

Firm-level Analysis of Globalization: A Survey of the

Eight Literatures

Mar

2010


and Yasushi UEKI

The Impacts of Face-to-face and Frequent

Interactions on Innovation:

Upstream-Downstream Relations

Feb

2010


and Yasushi UEKI

Innovation in Linked and Non-linked Firms:

Effects of Variety of Linkages in East Asia

Feb

2010


and Yasushi UEKI

Search-theoretic Approach to Securing New

Suppliers: Impacts of Geographic Proximity for

Importer and Non-importer

Feb

2010


and Yasushi UEKI

Spatial Architecture of the Production Networks in

Southeast Asia:

Empirical Evidence from Firm-level Data

Feb

2010

2009-23 Dionisius NARJOKO

Foreign Presence Spillovers and Firms Export Response:

Evidence from the Indonesian Manufacturing

Nov

2009

24


2009-22

Kazunobu HAYAKAWA,

Daisuke HIRATSUKA,

Kohei SHIINO, and Seiya

SUKEGAWA

Who Uses Free Trade Agreements? Nov

2009

2009-21 Ayako OBASHI Resiliency of Production Networks in Asia:

Evidence from the Asian Crisis

Oct

2009


Fukunari KIMURA Fragmentation in East Asia: Further Evidence

Oct

2009

2009-19 Xunpeng SHI The Prospects for Coal: Global Experience and

Implications for Energy Policy

Sept

2009

2009-18 Sothea OUM Income Distribution and Poverty in a CGE

Framework: A Proposed Methodology

Jun

2009

2009-17 Erlinda M. MEDALLA

and Jenny BALBOA

ASEAN Rules of Origin: Lessons and

Recommendations for the Best Practice

Jun

2009

2009-16 Masami ISHIDA Special Economic Zones and Economic Corridors Jun

2009

2009-15 Toshihiro KUDO Border Area Development in the GMS: Turning the

Periphery into the Center of Growth

May

2009

2009-14 Claire HOLLWEG and

Marn-Heong WONG

Measuring Regulatory Restrictions in Logistics

Services

Apr

2009

2009-13 Loreli C. De DIOS Business View on Trade Facilitation Apr

2009

2009-12 Patricia SOURDIN and

Richard POMFRET Monitoring Trade Costs in Southeast Asia

Apr

2009

2009-11 Philippa DEE and

Huong DINH

Barriers to Trade in Health and Financial Services in

ASEAN

Apr

2009

2009-10 Sayuri SHIRAI

The Impact of the US Subprime Mortgage Crisis on

the World and East Asia: Through Analyses of

Cross-border Capital Movements

Apr

2009


Akie IRIYAMA

International Production Networks and Export/Import

Responsiveness to Exchange Rates: The Case of

Japanese Manufacturing Firms

Mar

2009

2009-08 Archanun

KOHPAIBOON

Vertical and Horizontal FDI Technology

Spillovers:Evidence from Thai Manufacturing

Mar

2009

25


2009-07

Kazunobu HAYAKAWA,


Toshiyuki MATSUURA

Gains from Fragmentation at the Firm Level:

Evidence from Japanese Multinationals in East Asia

Mar

2009

2009-06 Dionisius A. NARJOKO

Plant Entry in a More

LiberalisedIndustrialisationProcess: An Experience

of Indonesian Manufacturing during the 1990s

Mar

2009

2009-05

Kazunobu HAYAKAWA,


Tomohiro MACHIKITA

Firm-level Analysis of Globalization: A Survey Mar

2009

2009-04 Chin Hee HAHN and

Chang-Gyun PARK

Learning-by-exporting in Korean Manufacturing:

A Plant-level Analysis

Mar

2009

2009-03 Ayako OBASHI Stability of Production Networks in East Asia:

Duration and Survival of Trade

Mar

2009


The Spatial Structure of Production/Distribution

Networks and Its Implication for Technology

Transfers and Spillovers

Mar

2009

2009-01 Fukunari KIMURA and

Ayako OBASHI

International Production Networks: Comparison

between China and ASEAN

Jan

2009

2008-03 Kazunobu HAYAKAWA

and Fukunari KIMURA

The Effect of Exchange Rate Volatility on

International Trade in East Asia

Dec

2008

2008-02

Satoru KUMAGAI,

Toshitaka GOKAN,

Ikumo ISONO, and

Souknilanh KEOLA

Predicting Long-Term Effects of Infrastructure

Development Projects in Continental South East

Asia: IDE Geographical Simulation Model

Dec

2008

2008-01

Kazunobu HAYAKAWA,


Tomohiro MACHIKITA

Firm-level Analysis of Globalization: A Survey Dec

2008

ERIA-DP-2015-08-text.pdfERIA-DPS-LIST

Host-site Support, Foreign Ownership, Regional Linkages and Technological Capabilities: Evidence from Automotive Firms in Indonesia

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