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Posted: March 21, 2017

ISEAS New Releases: Economics in SE Asia

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Impact of State Restructuring on Regional Economic Development in Indonesia
Adiwan Fahlan Aritenang

The creation of ASEAN Free Trade Area (AFTA) in 1992 and decentralization in 1999 mark the state restructuring in Indonesia. This book analyses the impact of state restructuring on regional economic development in Indonesia between 1993 and 2010. Regional economic analysis shows persistent and severe regional disparities throughout the period. Particularly, econometrics study found that decentralization has accelerated regional disparities whilst the AFTA effect is insignificant on regional economic growth.

Furthermore, historical institutionalism analysis on two cities — the manufacturing industry in Batam and the creative economy in Bandung — shows that past and embedded local institutions provide the capacity to adapt and create new development paths. The book suggests the importance of local-specific policies that embrace local knowledge and institutions to develop regional specialization and competitive advantage. This book fills the gap in Indonesian literature that lacks studies on the integrated impact of decentralization and trade liberalization, both economically and politically.

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The SIJORI Cross-Border REgion: Transnational Politics, Economics, and Culture
Francis E. Hutchinson (Editor) and Terence Chong (Editor)

Twenty-five years ago, the governments of Singapore, Malaysia, and Indonesia agreed to jointly promote the city-state, the state of Johor in Malaysia, and the Riau Islands in Indonesia. Facilitated by common cultural references, a more distant shared history, and complementary attributes, interactions between the three territories developed quickly. Logistics networks have proliferated and production chains link firms based in one location with affiliates or transport facilities in the other territories. These cross-border links have enabled all three locations to develop their economies and enjoy rising standards of living.

Initially economic in nature, the interactions between Singapore, Johor, and the Riau Islands have multiplied and grown deeper. Today, people cross the borders to work, go to school, or avail of an increasing range of goods and services. New political, social, and cultural phenomena have developed. Policymakers in the various territories now need to reconcile economic imperatives and issues of identity and sovereignty. Enabled by their proximity and increasing opportunities, families have also begun to straddle borders, with resulting questions about citizenship and belonging.

Using the Cross-Border Region framework – which seeks to analyse these three territories as one entity simultaneously divided and bound together by its borders – this book brings together scholars from a range of disciplines. Its 18 chapters and more than 20 maps examine the interaction between Singapore, Johor, and the Riau Islands over the past quarter-century, and seek to shed light on how these territories could develop in the future.

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Living Next to the Giant: The Political Economy of Vietnam’s Relations with China under Doi Moi
Le Hong Hiep

This book examines how the interaction between political and economic factors under Doi Moi has shaped Vietnam’s China policy and bilateral relations since the late 1980s.

After providing a historical background, the book examines the conflicting effects that Doi Moi has generated on bilateral relations. It demonstrates that Vietnam’s economic considerations following the adoption of Doi Moi contributed decidedly to the Sino-Vietnamese normalization in 1991 as well as the continuous improvements in bilateral ties ever since. At the same time, Vietnam’s economic activities in the South China Sea and China’s responses have intensified bilateral rivalry and put their ties under considerable strains.
The book goes on to argue that Doi Moi has indeed brought Vietnam newfound opportunities to develop a multi-level omni-directional hedging strategy against China. Finally, the book concludes by looking at the prospects of democratization in both countries and assessing the future trajectory of their relations under such circumstances.
As the most comprehensive and up-to-date survey of Vietnam’s relations with China over the past thirty years, the book is a useful reference source for academics, policymakers, students, and anyone interested in contemporary Vietnam foreign policy in general and Vietnam–China relations in particular.
 
Outward Foreign Direct Investment in ASEAN
Cassey Lee (Editor) and Sineenat Sermcheep (Editor)

The level of outward foreign direct investment (OFDI) flows from ASEAN countries has increased rapidly in past two decades. This book examines OFDI trends and patterns in the ASEAN region including the impact of the ASEAN Economic Community. It also provides analyses of country policies affecting OFDI and the drivers of OFDI in Indonesia, Malaysia, Singapore and Vietnam. Myanmar is studied as an investment frontier for other ASEAN countries.

“The dynamic economies of Southeast Asia have historically been very large recipients of foreign direct investment (FDI). As global capital markets have opened up, and these economies have developed their technological and commercial capabilities, in more recent years Southeast Asia has emerged as a significant source of outward FDI both within the region and beyond. This important volume, by a group of leading regional scholars, offers a timely, comprehensive, accessible and authoritative analysis of this phenomenon.”
— Hal Hill, H.W. Arndt Professor of Southeast Asian Economies, Arndt-Corden Department of Economics, Crawford School of Public Policy, Australian National University
“A timely, rich and comprehensive study filling a major gap in the literature on the increasingly important phenomenon of foreign investment flowing out from regions including developing and middle-income countries.”
— Luke Nottage, Professor of Comparative and Transnational Business Law; Associate Director, Centre for Asian and Pacific Law at the University of Sydney
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