IDEAS home Printed from https://ideas.repec.org/p/ngi/dpaper/24-05.html
   My bibliography  Save this paper

Global Britain, Belt and Road Initiative, and New Southbound Policy: Which One Matters to Southeast Asia?

Author

Listed:
  • Chengwei Xu

    (Graduate School of International Relations, International University of Japan, Japan)

  • Guanie Lim

    (National Graduate Institute for Policy Studies, Tokyo, Japan)

Abstract

In anticipation of the impending memberships of China, the UK, and Taiwan in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), this paper analyses the three economies’ foreign direct investment (FDI) flows entering the region over the last 20 years. Several findings are noteworthy. Firstly, the UK outinvested China and Taiwan between 1995 and 2008. However, its preponderance has been trimmed in the years after the 2008 global financial crisis. Secondly, UK FDI is largely geared towards Singapore and Malaysia, suggesting the resilience of former colonial ties. FDI from China predominantly enters its immediate neighbours (e.g., Laos, Myanmar, and Cambodia) and those sharing sociopolitical similarities with it (i.e., Singapore and Indonesia). Taiwanese firms invested relatively more in Vietnam and the Philippines, which are adjacent to Taiwan. Thirdly, all three FDI donors invested mostly in the tertiary sector. Nevertheless, relative to China, the UK and Taiwan channelled more of their FDI towards manufacturing activities. The findings could provide essential evidence to understand or anticipate which economy will play a more significant role in the region’s political and economic affairs especially when their CPTPP membership is ratified.

Suggested Citation

  • Chengwei Xu & Guanie Lim, 2024. "Global Britain, Belt and Road Initiative, and New Southbound Policy: Which One Matters to Southeast Asia?," GRIPS Discussion Papers 24-05, National Graduate Institute for Policy Studies.
    • Handle: RePEc:ngi:dpaper:24-05
    as

    Download full text from publisher

    File URL: https://grips.repo.nii.ac.jp/record/2000099/files/DP24-5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Leslie Elliott Armijo & Saori N. Katada, 2015. "Theorizing the Financial Statecraft of Emerging Powers," New Political Economy, Taylor & Francis Journals, vol. 20(1), pages 42-62, February.
    2. Thierry Theurillat, 2022. "Urban growth, from manufacturing to consumption and financialization: the case of China’s contemporary urban development," Regional Studies, Taylor & Francis Journals, vol. 56(8), pages 1244-1258, August.
    3. Heidi Dahles, 2008. "Entrepreneurship And The Legacies Of A Developmental State: Singapore Enterprises Venturing Across National Borders," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 485-508.
    4. Chengwei Xu & Alfred M. Wu, 2020. "International tax competition and foreign direct investment in the Asia–Pacific region: a panel data analysis," Journal of Public Budgeting, Accounting & Financial Management, Emerald Group Publishing Limited, vol. 33(2), pages 157-176, December.
    5. John Beirne & Nuobu Renzhi & Ulrich Volz, 2023. "When the United States and the People’s Republic of China Sneeze: Monetary Policy Spillovers to Asian Economies," Open Economies Review, Springer, vol. 34(3), pages 519-540, July.
    6. Fulong Wu & Fenghua Pan & Jie Chen, 2022. "Financialization under state entrepreneurialism in China," Regional Studies, Taylor & Francis Journals, vol. 56(8), pages 1237-1243, August.
    7. My Duong & Mark J. Holmes & Anna Strutt, 2021. "The impact of free trade agreements on FDI inflows: the case of Vietnam," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 26(3), pages 483-505, July.
    8. repec:wly:soecon:v:83:1:y:2016:p:176-201 is not listed on IDEAS
    9. Guanie Lim & Chengwei Xu, 2023. "The Political Economy of Japan’s Development Strategy under China-US Rivalry: The Crane, the Dragon, and the Bald Eagle," Chinese Economy, Taylor & Francis Journals, vol. 56(4), pages 281-291, July.
    10. Peter Nolan, 2014. "Globalisation and Industrial Policy: The Case of China," The World Economy, Wiley Blackwell, vol. 37(6), pages 747-764, June.
    11. Lai Si Tsui‐Auch, 2004. "The Professionally Managed Family‐ruled Enterprise: Ethnic Chinese Business in Singapore," Journal of Management Studies, Wiley Blackwell, vol. 41(4), pages 693-723, June.
    12. Hidetaka Yoshimatsu, 2020. "The EU-Japan free trade agreement in evolving global trade politics," Asia Europe Journal, Springer, vol. 18(4), pages 429-443, December.
    13. Robert Reed & Christina Lira & Lee Byung‐Ki & Junsoo Lee, 2016. "Free Trade Agreements and Foreign Direct Investment: The Role of Endogeneity and Dynamics," Southern Economic Journal, John Wiley & Sons, vol. 83(1), pages 176-201, July.
    14. Hong Liu & Kong Yam Tan & Guanie Lim, 2021. "Introduction — Southeast Asia And The Belt And Road Initiative: The Political Economy Of Regionalism, Trade, And Infrastructure," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 66(01), pages 1-20, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohd Shahidan Shaari & Muhamad Huzaifah Asbullah & Noorazeela Zainol Abidin & Zulkefly Abdul Karim & Benjamin Nangle, 2023. "Determinants of Foreign Direct Investment in ASEAN+3 Countries: The Role of Environmental Degradation," IJERPH, MDPI, vol. 20(3), pages 1-14, January.
    2. Carney, Michael & Zhao, Jing & Zhu, Limin, 2019. "Lean innovation: Family firm succession and patenting strategy in a dynamic institutional landscape," Journal of Family Business Strategy, Elsevier, vol. 10(4).
    3. Daniel McDowell, 2019. "The (Ineffective) Financial Statecraft of China's Bilateral Swap Agreements," Development and Change, International Institute of Social Studies, vol. 50(1), pages 122-143, January.
    4. Eric W. K. Tsang, 2020. "Family firms and internationalization: An organizational learning perspective," Asia Pacific Journal of Management, Springer, vol. 37(1), pages 205-225, March.
    5. Tingsong Wang & Jingyi Xu & Yong Jin & Shuaian Wang, 2024. "Assessing the Belt and Road Initiative’s Impact: A Multi-Regression Model Based on Economic Interaction," Sustainability, MDPI, vol. 16(11), pages 1-26, May.
    6. Giorgio Fagiolo & Tommaso Rughi, 2023. "Exploring the Macroeconomic Drivers of International Bilateral Remittance Flows: A Gravity-Model Approach," Economies, MDPI, vol. 11(7), pages 1-27, July.
    7. Elena Domínguez Romero & Susanne Durst & Antonio Navarro Garcia, 2024. "Rethinking internationalization processes: toward a circular framework," Review of Managerial Science, Springer, vol. 18(11), pages 3363-3394, November.
    8. Ganesh Dash & Syed Akmal & Prashant Mehta & Debarun Chakraborty, 2022. "COVID-19 and E-Learning Adoption in Higher Education: A Multi-Group Analysis and Recommendation," Sustainability, MDPI, vol. 14(14), pages 1-20, July.
    9. Lin Chun, 2023. "China's Market Reform Debate," Development and Change, International Institute of Social Studies, vol. 54(2), pages 422-441, March.
    10. Martin R.W. Hiebl & Zhen Li, 2020. "Non-family managers in family firms: review, integrative framework and future research agenda," Review of Managerial Science, Springer, vol. 14(4), pages 763-807, August.
    11. Ramos, Hazel Melanie & Man, Thomas Wing Yan & Mustafa, Michael & Ng, Zuie Zuie, 2014. "Psychological ownership in small family firms: Family and non-family employees’ work attitudes and behaviours," Journal of Family Business Strategy, Elsevier, vol. 5(3), pages 300-311.
    12. Xiao Jie Liu & Haiyue Liu & Shi Yi Liu & Jim Huangnan Shen & Chien‐Chiang Lee, 2022. "Profit sharing, industrial upgrading, and global supply chains: Theory and evidence," Review of Development Economics, Wiley Blackwell, vol. 26(4), pages 2454-2493, November.
    13. Marleen Dieleman, 2010. "Shock-imprinting: External shocks and ethnic Chinese business groups in Indonesia," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 481-502, September.
    14. Mahdi Ghodsi & Michael Landesmann & Nina Vujanović, 2024. "Can Multinationals Withstand Growing Trade Barriers?," wiiw Working Papers 239, The Vienna Institute for International Economic Studies, wiiw.
    15. Hoorani, Bareerah Hafeez & Plakoyiannaki, Emmanuella & Gibbert, Michael, 2023. "Understanding time in qualitative international business research: Towards four styles of temporal theorizing," Journal of World Business, Elsevier, vol. 58(1).
    16. Nareuporn (Bell) Piyasinchai & Trin Thananusak & Mat Hughes, 2024. "Effects of Family Ownership and Professionalization on Firms’ Financial Performance and Sustainability Reputation," Entrepreneurship Theory and Practice, , vol. 48(3), pages 856-880, May.
    17. Mikhail Stolbov, 2017. "Assessing systemic risk and its determinants for advanced and major emerging economies: the case of ΔCoVaR," International Economics and Economic Policy, Springer, vol. 14(1), pages 119-152, January.
    18. Worek, Maija & De Massis, Alfredo & Wright, Mike & Veider, Viktoria, 2018. "Acquisitions, disclosed goals and firm characteristics: A content analysis of family and nonfamily firms," Journal of Family Business Strategy, Elsevier, vol. 9(4), pages 250-267.
    19. Thomas, Lina, 2023. "The tale of two titans: US and China's distinct impact on the global economy," Finance Research Letters, Elsevier, vol. 58(PC).
    20. H. Yeung, 2006. "Change and Continuity in Southeast Asian Ethnic Chinese Business," Asia Pacific Journal of Management, Springer, vol. 23(3), pages 229-254, September.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ngi:dpaper:24-05. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/gripsjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.