In 2012 China became the world’s third largest overseas investor and the largest investor among developing countries. As policymakers seek to attract Chinese FDI to their countries, what factors should they focus on? By looking at primary data from a survey of 114 senior managers in China, this working paper by Bala Ramasamy and Matthew Yeung identifies the key determinants in attracting Chinese outward foreign direct investment. Five “low hanging fruits” are proposed to policymakers seeking to capture more attention from Chinese multi-nationals. In particular, they find that: a business environment with strong institutions; low levels of corruption; simple visa procedures; and strong economic and political relationships with China are significant advantages.

According to the 2014 World Bank Logistics Performance Index (LPI) countries from the Asia-Pacific such as Singapore, Malaysia, Vietnam and Cambodia are performing well in logistics regardless of income level. The World Bank LPI is a measurement of a country’s strengths and weaknesses in different areas of logistics, based on a survey of over 1,000 logistics professionals. The index captures six dimensions including customs, infrastructure, service quality, timeliness, ease of arranging shipments, and the ability to track and trace assignments. Policymakers attending the ARTNeT-UNNExT-World Bank Seminar held in Bangkok on 24 April, heard presentations from logistics experts Ben Shepherd, co-author of the 2014 study, and Ruth Banomyong who gave a perspective on logistics in Thailand. A video of the event is available here.

Together with a group of affiliated researchers and advisers, the ARTNeT secretariat joined the United Nations Economic Commission for Africa in organizing the inter-regional forum on “Facilitating the Effective Integration of Developing Countries in the Global Economy through Aid for Trade” from 22 to 24 April 2014 in Tunis, Tunisia. The meeting was successful in highlighting the acute Aid for Trade needs of countries like Nepal, Tunisia and Yemen and brought these issues to the awareness of potential donors such as the African Development Bank, Islamic Development Bank and the European Delegation. Further, the meeting saw the launch of the interactive Aid for Trade Key Indicators Dashboard which has been developed by ECLAC.

Key among the take-aways from the forum was the importance of enhancing the effectiveness of Aid for Trade. ARTNeT will provide an opportunity for consideration on this topis in a workshop to be held in June or July 2014, where it will also launch a handbook on monitoring and evaluation of the trade outcomes of Aid for Trade projects.

ARTNeT Secretariat is pleased to welcome a new institutional member from Thailand: Thammasat Institute for Study of International Cooperation (TISIC) of Thammasat University.

TISIC was previously known as the APEC and Regional Cooperation Study Center. Currently, TISIC comprises three sub-centers: Thai APEC Study Center (TASC), ACD Study Center and the Center for International Studies (CIS). With the objective to encourage research on trade and development issues, TISIC conducts many activities including research, seminars, training and database services that cover areas in trade and industrialization policy, international trade negotiation and international trade law, competition policy, telecommunication policy and intellectual property. We are sure they will be a valuable addition to the ARTNeT network. Dr. Suphat Suphachalasai, Director of TISIC, will be the ARTNeT focal point.  

This paper from the Research and Information System for Developing Countries (RIS) explores the effects of an FTA in goods within ASEAN+6 countries on intra-industry trade. The paper finds positive results both theoretically and through empirical estimates. The paper concludes that an FTA in goods under RCEP (Regional Comprehensive Economic Partnership) could help to propel and sustain intra-industry trade in the ASEAN region. Crucial effects would be felt through: the trade-FDI nexus, efficiency-driven economic restructuring, and economies of scale.

This paper from South Asia Watch on Trade, Economics and Environment (SAWTEE) shows that while significant progress was made towards the conclusion of the Doha Round of trade negotiations in Bali at the 9th WTO Ministerial Conference, from the view of the least developed countries (LDCs) many issues are still not fully addressed. The paper recommends that LDCs should identify their technical and financial needs for infrastructure development for compliance with the Trade Faciliation Agreement, and set up a Trade Facilitation body as stipulated in the Bali Decision.

This paper from the Philippine Institute for Development Studies (PIDS) analyzes the effects of the country’s recent FTA with EU on the domestic labor market. It argues, based on the Philippine’s previous experience of FTAs with ASEAN countries and Japan, that while the FTA with the EU could result in increased unemployment, empirical evidence suggests that the FTA should have positive results for the labor market on the whole.

To bring greater visibility to the research, publications and events of ARTNeT members, we will be increasingly using the ARTNeT website, newsletter and social media platforms to showcase members' work. Our communications reach over 1,000 interested researchers and policy makers across the region.  If you would like to bring greater attention to the achievments of your institution please fill in the information here, or email us at artnetontrade@un.org.