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A Study on the Impact of AFTA on Myanmar (Nu Nu Lwin, 2008)

http://hdl.handle.net/20.500.12678/0000001395
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85ad2e43-7348-48a8-aa00-57a26d282439
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2008_AFTA_Myanmar 2008_AFTA_Myanmar (MAAS)_Vol.VI_No.7.pdf (241 Kb)
Publication type
Journal article
Upload type
Publication
Title
Title A Study on the Impact of AFTA on Myanmar (Nu Nu Lwin, 2008)
Language en
Publication date 2008-01-01
Authors
NU NU LWIN
Description
The economic rationale for Myanmar joining AFTA is to enjoy greater trade and investment links within the region, hence increased attractiveness to foreign firms from outside the region and more secure access to the larger ASEAN market. The purpose of the study is to analyse the impact of AFTA on Myanmar economy in terms of trade and investment.
Myanmar’s export structure is shifting toward resource-based sector from its traditional agro-based sector. The importance of agro-based has declined mainly due to low competitiveness of the sector in comparison with neighboring countries although it has comparative advantage. While Myanmar’s exports are mainly based on natural resource-intensive sectors, Cambodia has an upward movement by shifting from agriculture and primary producing activities to manufacturing industry.
FDI inflows, both from intra-ASEAN and extra-ASEAN, dramatically fell since the onset of the Asian economic crisis in 1997 and then, severely affected by economic sanctions imposed by the US and other Western countries. Several weaknesses in the economy including existence of dual exchange rates, lack of infrastructure, poor telecommunication services, frequent changes of rules and regulations and lack of consistency and transparency have also hampered the FDI inflows to Myanmar.
The study highlights the important measure that Myanmar needs to accelerate its foreign trade liberalization, financial sector reforms, and private sector development especially the promotion of small and medium enterprises, privatization of state-owned economic enterprises, and improvement of infrastructure and intensification of domestic savings mobilization. Thus, Myanmar participation in AFTA and possible AEC is expected to lead economic growth of Myanmar based on its comparative advantage of abundant natural resources, its cheap but literate labour and other strategic advantages like its location between China and India.
Keywords
Economic Integration, ASEAN, AFTA, AEC
Journal articles
7
Myanmar Academy of Arts and Science
6
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