Global production sharing: Exploring Australia's competitive edge

Cross‐border dispersion of production processes within vertically integrated global industries (“global production sharing”) has been an increasingly important structural feature of economic globalisation in the recent decades. This paper examines patterns and determinants of global production sharing with an emphasis on how Australian manufacturing fits into global production networks (GPNs). Though Australia is a minor player in GPNs, there is evidence that Australian manufacturing has a distinct competitive edge in specialised, skill‐intensive tasks in several industries such as aircraft, medical devices, machine tools, measuring and scientific equipment and photographic equipment. Specialisation in high‐value‐to‐weight components and final goods within GPNs, which are suitable for air transport, helps Australian manufacturing to overcome the “tyranny of distance” in world trade. Being predominantly “relationship specific,” Australian GPN exports are not significantly susceptible to real exchange rate appreciation.     

Post-crisis export performance: The Indonesian experience in regional perspective

This paper examines post-crisis export performance in Indonesia against the backdrop of pre-crisis experience and the comparative export performance of other Southeast Asian countries. It surveys trends and patterns of export performance, focusing on comparative experience in major commodity categories and changing revealed comparative advantage. It also examines the implications for Indonesia's export performance of China's emergence as a major competitor in world trade, considers market prospects for textile and garment exports following the demise of the Multi-fibre Arrangement, and explores the factors contributing to the post-crisis export slowdown. The findings support the view that Indonesia's poor export performance in the post-crisis era is largely supply driven. They strengthen the case for reversal of recent backsliding in macroeconomic policy reform, and for speedy implementation of the unfinished reform agenda. Prudent macroeconomic management, while necessary, is not sufficient to achieve rapid and sustained export growth in an era of rapid economic globalisation.     

International Labour Migration in East Asia: trends, patterns and policy issues

This paper examines emerging patterns of labour migration in East Asia and related policy issues from the perspective of labour-importing countries. Following a survey of the characteristics of labour flows stemming from, but more importantly occurring within, the region, it probes inter-country differences, both in the timing of the entry of migrant workers and the degree of dependency on migrant labour in the context of rapid economic growth and labour market change. There is clear evidence that labour migration is now a structural feature of the economic landscape in these countries. The policy challenge is to design market-based systems for making the new reliance on labour inflows consistent with changing domestic labour market conditions and the priorities of national development policy, while minimising social resentment and adverse implications for political relations with neighbouring labour-sending countries.     

Food Safety Issues,Trade and WTO Rules: A Developing Country Perspective

The SPS Agreement and the related WTO dispute settlement mechanism are an important first step in strengthening the global trade architecture, bringing in greater transparency and orderly conditions to world food trade. However, implementation of the new trade rules has turned out to be a more complex task than the traditional market access issues handled by the WTO. Several factors, including inadequate financial and technical resources, have constrained devel‐oping countries from becoming effective participants in the implementation process, and there is widespread suspicion that SPS regulations are being used as hidden protectionist devices by developed countries. However, despite all the problems, some developing countries have been quite successful in penetrating developed country food markets; they have done so by accepting the consumer preferences and standards in quality‐sensitive high‐income markets and implementing domestic supply‐side measures. While making full use of available international assistance initiatives, developing countries should view the task of complying with SPS standards not just as a barrier but also as an opportunity to upgrade quality standards and market sophistication in the food export sector.     

Malaysian Trade Policy and the 2001 WTO Trade Policy Review

The purpose of this paper is two–fold; to examine developments in trade and investment policy regimes in Malaysia following the on–set of the financial crisis, using the Trade Policy Review Malaysia: 2001 of the WTO as a reference point; and to evaluate the Review in terms of the objectives of the WTO Trade Policy Review Mechanism as set out in the Marrakesh Agreement. It is found that, by and large Malaysia has managed to come out of the crisis without compromising on its long–standing commitment to maintaining a relatively open trade and investment policy regime by the regional standards. However, there are some disturbing post–crisis developments, which deserve scrutiny in a future Review. These include increase in the degree of dispersion of tariff rates because of high tariff peaks relating to a few product lines, increased reliance on non–automatic import licensing to regulate imports of a significant number of products which directly compete with domestic production by public sector enterprises, and unexplained delays in meeting commitments under the General Agreement on Trade in Services (GATS)     

International labour migration in the Asian-Pacific region: patterns,policies and economic implications

"This paper reviews the literature on international labour migration from and within the Asian-Pacific region. It deals with patterns and characteristics of migration flows, government policies towards labour migration, and economic implications of labour migration for both labour-exporting and importing countries in the region. The indications are that, despite gradual slowing down of labour flows to the western industrial countries and the Middle East, labour migration will continue to be a major economic influence on surplus-labour countries in the region. As an integral part of the growth dynamism in the region, labour migration has now begun to take on a regional dimension, with immense implications for the process of industrial restructuring in high growth economies and the changing pattern of economic interdependence among countries."