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The impact of globalization on equality has become a serious concern for many countries. More evidence that challenges the theoretical prediction of positive impact of international trade on income distribution has increasingly become available recently. This paper addresses this subject, surveying the empirical findings on the impact of international trade on inequalities from various perspectives. The survey reveals that an increase in trade openness by developing countries appears to have contributed to narrowing the development gap vis-à-vis developed countries, while its impacts on income gap between developing countries are not clear. The impacts of increased trade or trade liberalization on within-country inequalities are mixed. In some cases, trade liberalization improved wage-inequality, but in some other cases, the opposite pattern was observed. Similar mixed patterns are found for regional inequalities. These mixed findings are consistent with the fact that theoretical predictions are also mixed. One reason for the mixed findings is the impact of other factors affecting inequalities, including labor market conditions, inflow of capital, and policy reforms. Government needs to implement appropriate policies to deal with the inequalities. Two of the most important are policies to promote human resource development and policies on income redistribution. The former improves quality of labor, with the support from a well-functioning and flexible labor market. The latter covers policies on social safety net or on tax system. The safety net pays some portion of adjustment costs borne by workers who are adversely e tax system (e.g., progressive and inheritance tax) helps distribute income more equally between the rich and the poor. ; ADB_International_Trade_and_inequality.pdf: 768 downloads, before Oct. 1, 2020.

Small and medium-sized enterprises (SMEs) account for about 97-99 per cent of total enterprises and 60-80 per cent of total employment in ASEAN countries. The participation of SMEs is thus crucial for achieving greater regional economic integration amongst ASEAN countries. SMEs are, however, often constrained by many disadvantages that limit their abilities to become importers and exporters. This is well documented in the research literature on trade and firm size. This volume contains selected ASEAN country studies on the participation of SMEs in regional economic integration based on primary microdata. This is supplemented by empirical studies on the role played by East Asian multinational enterprises in the region.

Introduction -- Smes and regional production networks -- SMEs and production networks : framework -- SME participation in production networks : an analytical framework -- Constraints to growth and firm characteristic determinants of SME participation in production networks -- Constraints on SMEs and their participation in production networks : experiences of countries studied -- Constraints, determinants of SMEs' innovation, and the role of government supports -- Small and medium enterprises' access to finance : evidece from selected asian economies -- Conclusion and policy recommendations.

International production networks in manufacturing, particularly in machinery industries, have rapidly developed over the last two decades, resulting in dramatic increases in intra-regional and intra-industry trade, providing a key source of regional growth, integration and development in East Asia. This book provides a better understanding on how to effectively further increase SME participation in East Asian production networks, and in doing so identifies key challenges and issues that they need to address. This book aims to not only fill the theory-practice gap, but also to lay solid founda.

The impact of globalization on equality has become a serious concern for many countries. More evidence that challenges the theoretical prediction of positive impact of international trade on income distribution has increasingly become available recently. This paper addresses this subject, surveying the empirical findings on the impact of international trade on inequalities from various perspectives. The survey reveals that an increase in trade openness by developing countries appears to have contributed to narrowing the development gap vis-à-vis developed countries, while its impacts on income gap between developing countries are not clear. The impacts of increased trade or trade liberalization on within-country inequalities are mixed. In some cases, trade liberalization improved wage-inequality, but in some other cases, the opposite pattern was observed. Similar mixed patterns are found for regional inequalities. These mixed findings are consistent with the fact that theoretical predictions are also mixed. One reason for the mixed findings is the impact of other factors affecting inequalities, including labor market conditions, inflow of capital, and policy reforms. Government needs to implement appropriate policies to deal with the inequalities. Two of the most important are policies to promote human resource development and policies on income redistribution. The former improves quality of labor, with the support from a well-functioning and flexible labor market. The latter covers policies on social safety net or on tax system. The safety net pays some portion of adjustment costs borne by workers who are adversely affected by trade liberalization, while the tax system (e.g., progressive and inheritance tax) helps distribute income more equally between the rich and the poor.

This paper examines Indonesia's industrialization performance and policies, including its latecomer status, its generally rapid growth since the mid-1960s, its pronounced policy and performance episodes, and its ambivalent embrace of globalization. Particular attention is accorded to the deep economic-political crisis of 1997 - 98 and its aftermath, with the benefit of a rich, firm level database. The crisis resulted in slower industrial growth, less industrial mobility, and sluggish formal sector employment growth. We also consider some of the general analytical and policy implications for developing country industrialization from the Indonesian experience.

Small and medium-sized enterprises (SMEs) account for about 97-99 per cent of total enterprises and 60-80 per cent of total employment in ASEAN countries. The participation of SMEs is thus crucial for achieving greater regional economic integration amongst ASEAN countries. SMEs are, however, often constrained by many disadvantages that limit their abilities to become importers and exporters. This is well documented in the research literature on trade and firm size. This volume contains selected ASEAN country studies on the participation of SMEs in regional economic integration based on primary microdata. This is supplemented by empirical studies on the role played by East Asian multinational enterprises in the region.

Frontmatter -- Contents -- List of Tables -- List of Figures -- About the Contributors -- 1. Introduction / Lee, Cassey / Narjoko, Dionisius / Oum, Sothea -- Part 1: Country Studies -- 2. SME Participation in ASEAN and East Asian Integration Case of Cambodia / Thangavelu, Shandre M. / Oum, Sothea / Neak, Samsen -- 3. Indonesian Small and Medium Enterprise Participation in ASEAN Economic Integration / Anas, Titik -- 4. Lao SME Participation in Regional Economic Integration / Kyophilavong, Phouphet -- 5. Government Policies, Regional Trading Ag reements and Economic Performance of National Electronic Components Small and Medium-Sized Enterprises in Malaysia / Rasiah, Rajah / Thangiah, Govindamal -- 6. Myanmar SMEs' Participation in ASEAN and East Asian Regional Economic Integration With a Focus on Food and Apparel Manufacturing / Bernhardt, Thomas / Kanay De, S. / Dickenson-Jones, Giles -- 7 Philippine SME Participation in ASEAN and East Asian Regional Economic Integration / Aldaba, Rafaelita M. -- 8. Thailand's SME Participation in ASEAN and East Asian Regional Economic Integration / Charoenrat, Teerawat / Harvie, Charles -- 9. Vietnam SMEs' Participation in Regional Economic Integration Survey Results of Three Manufacturing Sectors / Chuc, Nguyen Dinh / Anh, Nguyen Ngoc / Thai, Thi Kim -- Part 2: Multinational Enterprise Studies -- 10. Use of Preference at Export Platform Evidence from Export to China by Japanese Affiliates in ASEAN / Hayakawa, Kazunobu / Toshiyuki, Matsuura -- 11. South Korean Multinational Enterprises and Vietnam SMEs' Participation in Global Production Networks in the Context of Increased ASEAN and East Asian Regional Economic Integration / Anh, Nguyen Ngoc / Anh, Thi Tuong / Minh, Nguyen Ngoc / Mai, Nguyen Thi Phuong -- 12. The Evolution of Taiwan's Economic Links with ASEAN / Chen, Shin-Horng / Wen, Pei-Chang / Liu, Meng-Chun -- 13. Chinese Multinational Firms in Southeast Asia A Study of Chery in Malaysia / Miao, Zhang -- Index

SMEs and economic integration in Southeast Asia -- Contents -- List of Tables -- List of figures -- About the Contributors -- 1. Introduction -- Part 1: Country Studies -- 2. SME Participation in ASEAN and East Asian Integration: Case of Cambodia -- 3. Indonesian Small and Medium Enterprise Participation in ASEAN Economic Integration -- 4. Lao SME Participation in Regional Economic Integration -- 5. Government Policies, Regional Trading Agreements and Economic Performance of National Electronic Components Small and Medium-Sized Enterprises in Malaysia -- 6. Myanmar SMEs' Participation in ASEAN and East Asian Regional Economic Integration: With a Focus on Food and Apparel Manufacturing -- 7. Philippine SME Participation in ASEAN and East Asian Regional Economic Integration -- 8. Thailand's SME Participation in ASEAN and East Asian Regional Economic Integration -- 9. Vietnam SMEs' Participation in Regional Economic Integration Survey Results of Three Manufacturing Sectors -- Part 2: Multinational Enterprise Studies -- 10. Use of Preference at Export Platform: Evidence from Export to China by Japanese Affiliates in ASEAN -- 11. South Korean Multinational Enterprises and Vietnam SMEs' Participation in Global Production Networks in the Context of Increased ASEAN and East Asian Regional Economic Integration -- 12. The Evolution of Taiwan's Economic Links with ASEAN -- 13. Chinese Multinational Firms in Southeast Asia: A Study of Chery in Malaysia -- Index.

1. Introduction / Chin Hee Hahn, Shujiro Urata and Dionisius Narjoko -- 2. Learning-by-exporting and plant characteristics / Chin Hee Hahn and Chang-Gyun Park -- 3. Exporting, productivity and innovation in Malaysian manufacturing / Cassey Lee -- 4. Does trade protection improve firm productivity? : evidence from Philippine micro-data / Rafaelita M. Aldaba -- 5. Impact of trade and investment liberalization on productivity in organized manufacturing in India / Ram Upendra Das -- 6. Policy reforms, firm entry and labour productivity change : learning from Vietnamese manufacturing / Dionisius Narjoko -- 7. The source of production, employment and productivity in Indonesia / Haryo Aswicahyono and Teguh Yudo Wicaksono -- 8. Vertical and horizontal FDI technology spillovers : evidence from Thai manufacturing / Archanun Kohpaiboon -- 9. The role of market potential in location choice : evidence from Japanese investment / Kazunobu Hayakawa and Toshiyuki Matsuura -- 10. Imports-as-market-discipline hypothesis : evidence from the Thai manufacturing sector / Archanun Kohpaiboon.

This study empirically examines how a reduction in input tariffs changes firms' choices between domestic and foreign inputs. In order to do so, we employ Indonesian manufacturing surveys from 2002 to 2010 and compute the share of imported inputs among total inputs at the firm‐product level. With this dataset, we examine the effect of preferential tariffs for ASEAN countries—that is, ASEAN Free Trade Area (AFTA) tariffs. Our findings can be summarized as follows: First, we found that a reduction in AFTA tariffs in Indonesia encouraged plants to raise their share of foreign inputs. Second, such an effect of AFTA tariffs was observed only for indigenous plants, or those whose primary sales market is the domestic market. Third, we found that the more productive plants experienced a greater impact of AFTA tariffs on foreign inputs. In short, the reduction in AFTA tariffs encouraged input reallocation, at least in some specific firms in Indonesia.