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2017 | OriginalPaper | Chapter

3. The Impact of Bilateral FTA: Bilateral Level Analysis

Author : Kiki Verico

Published in: The Future of the ASEAN Economic Integration

Publisher: Palgrave Macmillan UK

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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 (the noodle bowl phenomenon) or building block for the AFTA in regards to of increasing FDI inflows is discussed in Chap. 2 .

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previous chapter The Impact of ASEAN FTA: Regional Level Analysis
next chapter The Impact of the International Tripartite Rubber Organization (ITRO): Sub-Regional Level Analysis
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Metadata
Title
The Impact of Bilateral FTA: Bilateral Level Analysis
Author
Kiki Verico
Copyright Year
2017
Book
The Future of the ASEAN Economic Integration

Print ISBN: 978-1-137-59612-3

Electronic ISBN: 978-1-137-59613-0

Copyright Year: 2017

DOI
https://doi.org/10.1057/978-1-137-59613-0_3