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The Administration of Small-Scale Economies in the Cross- Border Trade in Southeast Asia

Author

Listed:
  • Hadi Suratman
  • FX. Adji Samekto
  • Nanik Trihastuti

Abstract

Purpose: This research aims to reveal that the servitude for economic interest in cross border trade zone can be applied in Southeast Asian countries. This trade cooperation includes the right to carry out certain actions in a country's territory as a place of trade for their foreign citizens. Approach/Methodology/Design: This study was conducted by using the field research and analyzed with descriptive analysis regarding the establishment of inter-state trade zones in the border regions of Malaysia and Indonesia. Findings: The results showed that managing the border region it is required to be emphasized by using servitude for economic interest to establish special trade zone for the creation of social justice in the border region. The establishment of a Special Area of Cross Border Trade, as that in Serikin market in Serawak, Malaysia, can be administratively used an alternative in managing the socio-economic border relations between Indonesia and Malaysia. There are several issues that must be examined as the implications of the establishment of border trade zones. Practical Implications: It is necessary to make an agreement on a special cross-border trade area to complement BCA and the BTA, in form of the Border Area Agreement (BAA). Originality/value: The trade area in the Serawak border is part of the acculturation of border communities, which requires special consideration in terms of management, legal rights and national jurisdiction. In addition, this kind of trade area is not formed by the Border Cross Agreement (BCA) and the Border Trade Agreement (BTA).

Suggested Citation

  • Hadi Suratman & FX. Adji Samekto & Nanik Trihastuti, 2020. "The Administration of Small-Scale Economies in the Cross- Border Trade in Southeast Asia," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 210-218.
    • Handle: RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:210-218
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    References listed on IDEAS

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    1. Peter D. Little & Waktole Tiki & Dejene Negassa Debsu, 2015. "Formal or Informal, Legal or Illegal: The Ambiguous Nature of Cross-border Livestock Trade in the Horn of Africa," Journal of Borderlands Studies, Taylor & Francis Journals, vol. 30(3), pages 405-421, September.
    2. Assoc. Prof.Dr Filloreta Madani & Assoc. Prof.Dr Evelina Bazini, 2017. "Development of the Life Insurance Market in Albania," European Journal of Economics and Business Studies Articles, Revistia Research and Publishing, vol. 3, ejes_v3_i.
    3. Fariastuti Djafar & Mohd Khairul Hisyam Hassan & Dzul Hadzwan Husaini, 2016. "Informal Agricultural Trade And Trans-Border Farmers Between Malaysia And Indonesia," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(4), pages 19-37, October-D.
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    More about this item

    Keywords

    Servitude; sovereign rights; special trade zone; cross-border trade; Indonesia-Malaysia.;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment

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