The Impact of Bilateral FTA: Bilateral Level Analysis

Kiki Verico

Chapter 3 in The Future of the ASEAN Economic Integration, 2017, pp 113-144 from Palgrave Macmillan

Abstract: Abstract Direct bilateral free trade agreements (BFTA) may potentially attract FDI inflows from non-member to ASEAN members individually. This will strategically enhance trade and investment integration at the country level. Given its objective to attract FDI inflows, some references show that BFTA may potentially jeopardize AFTA’s objective to create discriminative trade agreement in order to attract FDI inflows from non-members. This risk is known as the “Asian Noodle Bowl Phenomenon.” This chapter explains that this study observes the impact of BFTA on FDI inflows of selected members of ASEAN—Indonesia, Malaysia, Thailand, and Philippines. This chapter attempts to see which member is most appropriate to adopt BFTA and which are not. The role of BFTA whether as a stumbling block stumbling block (the noodle bowl phenomenon) or building block building block for the AFTA in regards to of increasing FDI inflows is discussed in Chap. 2 .

Keywords: Foreign Direct Investment; Trade Agreement; Ordinary Little Square Model; Foreign Direct Investment Inflow; Bilateral Agreement (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-137-59613-0_3

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DOI: 10.1057/978-1-137-59613-0_3

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