The dynamic development of Asia-Pacific Economic Cooperation (APEC) : the case of Indonesian trade and investment

Abstract

The aim of this thesis is to study the dynamic growth of the Pacific Rim particularly in the context of the establishment of the Asia Pacific Economic Cooperation Forum (APEC). The development of APEC commenced in Canberra with one goal-to secure trade and investment liberalization. After the 1994 Bogor Declaration in Indonesia, there has been an extension and acceleration of this objective with moves to the creation of a free trade area.

This thesis uses the Ashfaq Ahmad et al formulation to study the relationship of Indonesian trade and investment to economic growth. In this analysis, the study explores some potentialities and problems of Indonesia's trade and investment data. Since the early reform measures with the relaxation of some economic regulations in 1966, the economy has now entered a phase of extensive deregulation.

This thesis discusses ASEAN perspectives of APEC, indicating the different nuances appearing among ASEAN members, especially Malaysia with its EACC proposal. Moreover, it also confirms that APEC members benefit from intra-trade and investment, especially the Industrializing country members. The study also concentrates on the Indonesian perspective of APEC and illustrates the concerns that Indonesia has in respect of maintaining trade and investment growth in the context of a more formalized APEC.

The thesis confirms the transformation of Indonesia from a poor nation of the 1960's to become one of the NIE's of the present day. However, it reveals that notwithstanding the economic growth that has occurred, the benefits have not been evenly spread throughout regions and sectors of the economy.