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Border Area Development in the GMS: Turning the Periphery into the Center of Growth

Author

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  • Toshihiro KUDO

    (Area Studies Center, Institute of Developing Economies, Japan)

Abstract

Border area development is neither an original nor a brand new idea of the author. It has long been discussed in a variety of words including border industries, growth triangles, growth areas and economic corridors. The Greater Mekong Subregion (GMS) Economic Cooperation revitalized the border area development as a new development strategy for less developed countries such as Cambodia, Lao PDR and Myanmar. This paper examines the location advantages of border areas, in particular of those between less developed regions and more developed ones. They include complementary factor endowment, cross-border infrastructure services and the degree of economic integration and border barriers. An industry located in border areas has a growth potential, as it can exploit the location advantages of the abundant and cheap labor force in less developed regions, while avoiding high service link costs and unstable utility services that accrue from underdeveloped infrastructure in less developed regions, by utilizing cross-border infrastructure services provided from more developed regions. Special economic zones (SEZs) located in the border areas can effectively exploit such location advantages and contribute to the formation of industrial clusters in border areas.

Suggested Citation

  • Toshihiro KUDO, 2009. "Border Area Development in the GMS: Turning the Periphery into the Center of Growth," Working Papers d018, Economic Research Institute for ASEAN and East Asia (ERIA).
    • Handle: RePEc:era:wpaper:d018
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    File URL: http://www.eria.org/ERIA-DP-2009-15.pdf
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    Citations

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    Cited by:

    1. Nguyen, Binh Giang, 2013. "Cambodia - Laos - Vietnam Development Triangle: A Viewpoint from Vietnam," MPRA Paper 45732, University Library of Munich, Germany.
    2. Hiroyuki Taguchi & Nattawoot Tripetch, 2014. "The "Maquila" Lessons and Implications to Thai-Myanmar Border Development," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 4(3), pages 392-406, March.
    3. Kudo, Toshihiro & Kumagai, Satoru, 2012. "Two-polar growth strategy in Myanmar : seeking "high" and "balanced" development," IDE Discussion Papers 371, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    4. Taguchi, Hiroyuki & Nozaki, Kenji, 2014. "Regional connectivity in continental ASEAN," MPRA Paper 64410, University Library of Munich, Germany.
    5. Evelyn S. Devadason, 2013. "Whither Sub-Regional Cooperation? The CLMV Perspective," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 1-36, July.
    6. Mohd Rosli, 2013. "Book Review: Small and Medium Enterprises (SMEs) Access to Finance in Selected East Asian Economies, by Charlies Harvie, Sothea Oum and Dionisius A. Narjoko, (eds), ERIA Research Project Report 2010-1," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(2), pages 159-160, July.

    More about this item

    Keywords

    Border Area Development; GMS; Border Industry; SEZ.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • N65 - Economic History - - Manufacturing and Construction - - - Asia including Middle East
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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