Abstract
This study attempts to observe the ASEAN economic integration progress based on the impact of ASEAN Free Trade Area (AFTA) on FDI inflows of both multi-country (Indonesia, Malaysia and Thailand) with macroeconomylevel data and single country (Indonesia) with micro firm-level data. Macroeconomy level data uses macroeconomy data set with time-dummy variable of ‘before and after’ the comprehensive implementation of AFTA as the representation of AFTA. Micro firm-level data utilizes Indonesia’s manufacturing survey of 25,696 firms under the International Standard of Industrial Classification digit 5 (ISIC-5) with the ASEAN’s Common Effective Preferential Tariff (CEPT) of 19,425 tariff rates data as the representation of AFTA. The form of the macro-level data is longitudinal and the form of the micro-level data is cross-sectional. From the multi-country analysis this study finds that AFTA is not effective in attracting FDI inflows while from the single-country analysis it finds the opposite. These findings prove that the impact of AFTA on FDI inflows in ASEAN is open-ended and varies within member states.
Article Details
- Year: 2015
- Volume: 36
- Issue: 2
- Pages: 91 - 124
- Accepted: 19.02.2015
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DOI:
https://doi.org/10.5281/zenodo.20309507 -
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How to Cite?
Kiki Verico (2015). Open-Ended Impact of AFTA on FDI inflows: Evidence from Macro-level data of Indonesia, Malaysia, Thailand and Firm-level data of Indonesia. Journal of Economic Cooperation and Development, 36(2), 91-124. https://doi.org/10.5281/zenodo.20309507
