BIMP-EAGA Investment Opportunities in Corridor Value Chains

Montague Lord and Pawat Tangtrongjita

MPRA Paper from University Library of Munich, Germany

Abstract: The study examines potential investment opportunities for cross-border value chains in the economic corridors of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA). offers an investment perspective that is grounded on extensive interviews with company representatives and public sector officials. Qualitative and quantitative-based surveys were conducted over a six-week period by the study team that interviewed 70 companies distributed over 20 industry classifications or divisions in six BIMP-EAGA corridor states and provinces. It presents the results of three approaches to identifying and rating corridor value chains based on (a) provincial and state development priorities along the corridors; (b) business perceptions about corridor-wide opportunities; and (c) mapping the comparative advantages revealed by the exports from corridor provinces and states into different types of industry classifications. Overall, the study finds that opportunities for investment in corridor value chains abound in both BIMP-EAGA corridors. Among the most compelling reasons to invest in these types of cross-border value chains are their internal and external effects generated by knowledge transfers, scale economies, upstream and downstream linkages, the ability of corridor value chains to attract investment from multinational enterprises, the subregion’s favorable policy and regulatory environment, and the ability of these types of investments to substantially broaden existing markets for goods and services in the subregion.

Keywords: value chains; cross-border investment; cross-border value chains; BIMP-EAGA; Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (search for similar items in EconPapers)
JEL-codes: F14 F15 L1 (search for similar items in EconPapers)
Date: 2016-11-30
New Economics Papers: this item is included in nep-int and nep-sea
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