The main objective of this thesis is to examine the extent of and the potential for Arab economic integration. It adds to the growing literature on the issue of economic integration by throwing the spotlight on several issues hitherto little considered in the existing literature. The thesis especially blends various aspects of economic integration with models of spatial competition, economic geography, regionalisation and globalisation to explain the problems of and prospects for economic integration for the Arab countries. It is important to realise that economic integration has become an important aim for almost all countries in the world; in particular, less developed countries, which need more economic efforts to be able to deal with the current international milieu and the gale of globalisation. The Arab countries have engaged in a number of initiatives to advance economic integration, however despite this the degree of economic integration among them is still relatively insignificant. The thesis also attempts to offer theoretical models to explain the obstacles preventing economic integration in the Arab world. This thesis is, to the best of the author’s knowledge and belief, the first rigorous study of the extent of and the potential for Arab economic integration through three vital economic perspectives: trade, investment and labour flows. In the first perspective, this study investigates the nature of intra-Arab trade and which particular countries/sub-group of countries may potentially become an integrated regional production system, or hub. This investigation is done within the scope of gravity models, which assume that intra-trade is a function of the GDPs of the involved countries and the distance between them. The thesis extends the literature by introducing spatial models and models of new economic geography to explain how economic integration evolves in the current international milieu concomitantly driven by globalisation and regionalisation. In the second perspective, this study investigates intra-Arab FDI and capital mobility. The postulated model assumes that intra-Arab FDI is a function of a number of economic variables, such as GDP, GDP per capita, inflation and purchasing power parity. The thesis offers a comprehensive theoretical model to explain how successful economic integration can be carried out by FDI flows. In the third perspective, the study investigates intra-Arab labour flows. The proposed model utilises remittances as an indicator of labour flows. It assumes that remittances are a function of some economic variables, such as GDP per capita, the real price of oil, and the oil production of Saudi Arabia, which represents the main Arab host country of Arab labour flows. The proposed theoretical model offers insights into the dynamics of labour flows and oil price movements. The econometric study in the thesis applies panel data for the period 1985-2005, and employs Ordinary Least Squares (OLS) fixed effects regression. The most important empirical finding of the study is that Arab economic integration has been significantly affected by intra-trade, intra-FDI and intra-labour flows among sub-unions of Arab countries. / Doctor or Philosophy (PhD)

The main objective of this thesis is to examine the extent of and the potential for Arab economic integration. It adds to the growing literature on the issue of economic integration by throwing the spotlight on several issues hitherto little considered in the existing literature. The thesis especially blends various aspects of economic integration with models of spatial competition, economic geography, regionalisation and globalisation to explain the problems of and prospects for economic integration for the Arab countries. It is important to realise that economic integration has become an important aim for almost all countries in the world; in particular, less developed countries, which need more economic efforts to be able to deal with the current international milieu and the gale of globalisation. The Arab countries have engaged in a number of initiatives to advance economic integration, however despite this the degree of economic integration among them is still relatively insignificant. The thesis also attempts to offer theoretical models to explain the obstacles preventing economic integration in the Arab world. This thesis is, to the best of the author’s knowledge and belief, the first rigorous study of the extent of and the potential for Arab economic integration through three vital economic perspectives: trade, investment and labour flows. In the first perspective, this study investigates the nature of intra-Arab trade and which particular countries/sub-group of countries may potentially become an integrated regional production system, or hub. This investigation is done within the scope of gravity models, which assume that intra-trade is a function of the GDPs of the involved countries and the distance between them. The thesis extends the literature by introducing spatial models and models of new economic geography to explain how economic integration evolves in the current international milieu concomitantly driven by globalisation and regionalisation. In the second perspective, this study investigates intra-Arab FDI and capital mobility. The postulated model assumes that intra-Arab FDI is a function of a number of economic variables, such as GDP, GDP per capita, inflation and purchasing power parity. The thesis offers a comprehensive theoretical model to explain how successful economic integration can be carried out by FDI flows. In the third perspective, the study investigates intra-Arab labour flows. The proposed model utilises remittances as an indicator of labour flows. It assumes that remittances are a function of some economic variables, such as GDP per capita, the real price of oil, and the oil production of Saudi Arabia, which represents the main Arab host country of Arab labour flows. The proposed theoretical model offers insights into the dynamics of labour flows and oil price movements. The econometric study in the thesis applies panel data for the period 1985-2005, and employs Ordinary Least Squares (OLS) fixed effects regression. The most important empirical finding of the study is that Arab economic integration has been significantly affected by intra-trade, intra-FDI and intra-labour flows among sub-unions of Arab countries. / Doctor or Philosophy (PhD)

This thesis investigates implications of interdependence between stock market prices in the context of several financial applications including: portfolio selection, tests of market efficiency and measuring the extent of integration among national stock markets. In Chapter 2, I note that volatility spillovers (transmissions of risk) have been found in numerous empirical studies but that no one, to my knowledge, has evaluated their effects in the general portfolio framework. I dynamically forecast two multivariate GARCH models, one that accounts for volatility spillovers and one that does not, and construct optimal mean-variance portfolios using these two alternative models. I show that accounting for volatility spillovers lowers portfolio risk with statistical significance and that risk-averse investors would prefer realised returns from portfolios based on the volatility spillover model. In Chapter 3, I develop a structural MGARCH model that parsimoniously specifies the conditional covariance matrix and provides an identification framework. Using the model to investigate interdependencies between size-sorted portfolios from the Australian Stock Exchange, I gain new insights into the issue of asymmetric dependence. My findings not only confirm the observation that small stocks partially adjust to market-wide news embedded in the returns to large firms but also present evidence that suggests that small firms in Australia fail to even partially adjust (with statistical significance) to large firms??? shocks contemporaneously. All adjustments in small capitalisation stocks occur with a lag. Chapter 4 uses intra-daily data and develops a new method for measuring the extent of stock market integration that takes into account non-instantaneous adjustments to overnight news. This approach establishes the amounts of time that the New York, Tokyo and London stock markets take to fully adjust to overnight news and then uses this This thesis investigates implications of interdependence between stock market prices in the context of several financial applications including: portfolio selection, tests of market efficiency and measuring the extent of integration among national stock markets. In Chapter 2, I note that volatility spillovers (transmissions of risk) have been found in numerous empirical studies but that no one, to my knowledge, has evaluated their effects in the general portfolio framework. I dynamically forecast two multivariate GARCH models, one that accounts for volatility spillovers and one that does not, and construct optimal mean-variance portfolios using these two alternative models. I show that accounting for volatility spillovers lowers portfolio risk with statistical significance and that risk-averse investors would prefer realised returns from portfolios based on the volatility spillover model. In Chapter 3, I develop a structural MGARCH model that parsimoniously specifies the conditional covariance matrix and provides an identification framework. Using the model to investigate interdependencies between size-sorted portfolios from the Australian Stock Exchange, I gain new insights into the issue of asymmetric dependence. My findings not only confirm the observation that small stocks partially adjust to market-wide news embedded in the returns to large firms but also present evidence that suggests that small firms in Australia fail to even partially adjust (with statistical significance) to large firms??? shocks contemporaneously. All adjustments in small capitalisation stocks occur with a lag. Chapter 4 uses intra-daily data and develops a new method for measuring the extent of stock market integration that takes into account non-instantaneous adjustments to overnight news. This approach establishes the amounts of time that the New York, Tokyo and London stock markets take to fully adjust to overnight news and then uses this

<p>After regaining independence from Soviet Union in 1991, Estonia, Latvia and Lithuania started transition process from centrally planned- to market economy and their rapid progress has claimed to be one of a kind. Baltic States experienced a long period of exceptional economic growth and earned nickname of Baltic Tigers. International economic integration was one their main agenda and the countries signed several Free Trade Agreements during the 1990’s. The integration process culminated in 2004 when the countries joined the European Union.</p><p> </p><p>We were interested in to study how Baltic States trade patterns has evolved after they joined the union and research question was set out to ask:</p><p> </p><p><em>What changes have </em><em>Baltic States</em><em> trade patterns undergone since their EU accession?</em></p><p> </p><p>Complemented by sub-questions:</p><p> </p><p><em>Has the trade with </em><em>Russia</em><em> changed for the </em><em>Baltic States</em><em>?</em></p><p><em>Have there been any changes in size of SITC sectors of export and import when comparing before and after EU accession.</em></p><p> </p><p>The aim of this study was to investigate how the Baltic States EU membership has affected on their trade patterns and also to examine what kind of role Russia still has in their trade. In addition to general changes in the Baltic States trade we aimed to analyze trade patterns on a commodity level and studied trade flows in SITC (Standard International Trade Classification) sectors.</p><p> </p><p>The study is conducted from the positivistic standpoint and by using a deductive approach. Theories of economic integration and international trade have been used to formulate the research problem. We have used a quantitative research strategy and data of the Baltic States trade flows are gathered from Eurostat, Statistical office of the European Communities. The time frame of this study was limited to cover years 1999-2007 and since our focus was to examine trade developments over time, we have computed annual changes of trade flows.</p><p><strong> </strong></p><p>Our theoretical framework<strong> </strong>consists of theories about economic integration, and Customs Union theory which has been the basis for our analysis.</p><p> </p><p>According to our findings intra-EU trade dominates both in exports and imports in all the Baltic Countries. We can see that EU accession has had impact on import patterns as imports from within the EU has increased and even more so after accession. Russia has continued to be a significant trading partner and exports to Russia have even increased after the countries joined the EU. Our findings suggest that joining the European Union has had effect on their trade patterns but we also argue that major change and specialization has already happened when they signed Free Trade Agreements.</p>

Explore factors that influence investors interested in investing in the electronic components sector in Thailand, with a focus on the consequences of Thailand‟s membership in the ASEAN-China Free Trade Agreement.

After regaining independence from Soviet Union in 1991, Estonia, Latvia and Lithuania started transition process from centrally planned- to market economy and their rapid progress has claimed to be one of a kind. Baltic States experienced a long period of exceptional economic growth and earned nickname of Baltic Tigers. International economic integration was one their main agenda and the countries signed several Free Trade Agreements during the 1990’s. The integration process culminated in 2004 when the countries joined the European Union.   We were interested in to study how Baltic States trade patterns has evolved after they joined the union and research question was set out to ask:   What changes have Baltic States trade patterns undergone since their EU accession?   Complemented by sub-questions:   Has the trade with Russia changed for the Baltic States? Have there been any changes in size of SITC sectors of export and import when comparing before and after EU accession.   The aim of this study was to investigate how the Baltic States EU membership has affected on their trade patterns and also to examine what kind of role Russia still has in their trade. In addition to general changes in the Baltic States trade we aimed to analyze trade patterns on a commodity level and studied trade flows in SITC (Standard International Trade Classification) sectors.   The study is conducted from the positivistic standpoint and by using a deductive approach. Theories of economic integration and international trade have been used to formulate the research problem. We have used a quantitative research strategy and data of the Baltic States trade flows are gathered from Eurostat, Statistical office of the European Communities. The time frame of this study was limited to cover years 1999-2007 and since our focus was to examine trade developments over time, we have computed annual changes of trade flows. Our theoretical framework consists of theories about economic integration, and Customs Union theory which has been the basis for our analysis.   According to our findings intra-EU trade dominates both in exports and imports in all the Baltic Countries. We can see that EU accession has had impact on import patterns as imports from within the EU has increased and even more so after accession. Russia has continued to be a significant trading partner and exports to Russia have even increased after the countries joined the EU. Our findings suggest that joining the European Union has had effect on their trade patterns but we also argue that major change and specialization has already happened when they signed Free Trade Agreements.

Since the mid-eighties, progress in European economic integration has contributed to changing conditions for the conduct of business in many sectors of the economies. Such is the case in Sweden, whose commitment to the formal integration process also has changed in recent years, from a free trade arrangement (EFTA) via the European Economic Area (The EFTA states' affiliation to the European Union's Internal Market), to membership in the European Union. A theoretical point of departure for this thesis was the finding that although economic integration entails strategic consequences for firms, studies treating economic integration with a general business strategy perspective were rare. Hence, the main purpose has been to achieve knowledge about the European Internal Market's strategic consequences for Swedish firms, with the focus on manufacturing SMEs. Empirically, it is examined how integration has been experienced in firms through two questionnaires, sent in earlier and later stages of the formal integration process. Although the responses indicate a limited impact from the Internal Market, they present some arguments for an increased internationalisation. There are, however, reasons to believe that factors other than political initiatives were behind such a development. In the theoretical part of this thesis, obstacles to international competition, and the corresponding competitive advantages, are seen as being central for understanding integration effects as well as for the possibilities to respond to them. An essential distinction is made between different types of obstacles, based on origin or main causes. One or other of these categories may be crucial for a firm when defending a strategic market position, or may hinder the firm from competing in other markets. Furthermore, obstacles in the different categories are in principle influenced by integration measures to a varying degree, and the survey indicated that the type of obstacle that is primarily influenced by integration measures is the one with the least perceived influence on firms' competitive strength. In the last part of the thesis, and with several different points of departure - trade and integration theory, international business, strategic management, and the Internal Market's institutional framework - a model for analysis of integration effects in business strategy terminology is developed and presented. The model is constituted by a geographic dimension and a dimension concerning the product and distribution in a broad sense. For firms with strategic positions which are affected according to the analysis, two principal strategic responses are discussed: to re-establish former competitive advantages or to adapt to the new situation by re-orienting the business. / digitalisering@umu

University of Macau / Faculty of Social Sciences and Humanities / Department of Government and Public Administration

University of Macau / Faculty of Social Sciences and Humanities / Department of Government and Public Administration

Economic globalization at post-Cold War era brings new opportunities and challenges for economic development in each country. Regionalism is the main feature of multipolar international systems and globalization and regionalization are two main powers to push current international politics and economy development forward. Since China reformed and opened the policy in 1978, fast economic growth has made China become the regional leader to obtain regional politics and economy advantages through good-neighborly diplomacy. Moreover, ASEAN consists of medium and small countries and has to build up the safety for the Nationals and regions as so to strengthen the integration of politics and economy. Due to the painful lessons of Asian Financial Crisis in 1997, the turning point contributes both parties to establish ¡§China-ASEAN FTA¡¨ in 2010. Taiwan is located at the center of west Pacific which is the major juncture of North East Asia and Southeast Asia and has the superiority of geographical conditions. Taiwan is a trade-oriented country and Taiwan, China and ASEAN have close economic and trade relations. Taiwan depends deeply on China¡¦s economy and trade and the establishment of ¡§China-ASEAN FTA¡¨ will cause crowding effect to Taiwan¡¦s economy and trade. Due to international blockaded by China¡¦s ¡§one China¡¨ policy, ASEAN maintains separation strategy of economy and trade to Taiwan. During the economic globalization, advancing Regional Trade Agreement or allying with bilateral trade has become the strategy for each country to boost global competitiveness through regional economic integration. Therefore, stable domestic political environment is one of the main elements to affect national diplomacy and security policy. Cross-Strait relations in politics are full of complex confrontation and contradiction. After Ma Ying-jeou exercised the power, both sides opened the negotiation way and economic issues have become the most important focus. Both sides started with theory of neofunctionalism and the precondition is to put the controversy about both sides¡¦ sovereignty aside but normalize the economic and trade relations. Both sides reopened the negotiation which is the foundation to build up mutual trust and reciprocity and mutual benefit is the ultimate goal. Opposite ideology shall be put aside and Economic Cooperation Framework Agreement shall be signed to ensure the economic safety and cooperation between both sides in response to the impact of establishing ¡§China-ASEAN FTA¡¨ to settle a stable economic relation to both sides.