ASEAN’s initiatives for regional economic integration and the implications for maritime logistics reforms

• Pages: 479-493
• Published date: 09 November 2015
• DOI: https://doi.org/10.1108/IJLM-08-2013-0092
• Date: 09 November 2015
• Author: Inkyo Cheong,Kamonchanok Suthiwartnarueput
• Subject Matter: Management science & operations,Logistics

ASEAN’s initiatives for regional

economic integration and the

implications for maritime

logistics reforms

Inkyo Cheong

Department of Economics, Inha University, Incheon, Republic of Korea, and

Kamonchanok Suthiwartnarueput

Logistics Management Programme, Chulalongkorn University,

Bangkok, Thailand

Abstract

Purpose –The purpose of this paper is to estimate the economic impact of reducing logistics cost

on the demand for port throughput in the context of Association of Southeast Asian Nations’(ASEAN)

regional economic integration and to realize the potential economic gains of the maritime logistics

reform in the region.

Design/methodology/approach –The main part ofthis paper is to formulate conversioncoefficients

for containerized cargo to estimate the impacts of logistics reform on the demand for port throughput.

These conversion coefficients, then have been used into a dynamic computational general equilibrium

model using Global Trade Analysis Project databaseto explore the impact of logistics cost.

Findings –The study demonstrates that logistics efficiency is a challenge for ASEAN economic

integration, providing significant implications for maritime logistics reforms.

Research limitations/implications –This study assumes uniform improvements of 5 and

10 percent in the logistics sector for all countries due to lack of detailed data on the logistics sectors

in ASEAN countries.

Practical implications –The findings of this study could help ASEAN policymakers for deeper

understanding of efficient maritime logistics in realizing the economic gains from its regional economic

integration initiatives.

Originality/value –Although there are many descriptive studies on the importance of logistics

efficiency in improving international competitiveness in a country or a region, these are not supported

by quantitative assessment in the case of ASEAN. This study addresses the dearth of empirical

evidence based on real data on trade and maritime cargo flows. This study contributes to highlighting

that ASEAN countries should reform their logistics policies and practices.

Keywords Transportation, Asia, Modelling, Maritime Logistics

Paper type Research paper

1. Research motivation

The Association of Southeast Asian Nations (ASEAN) countries have promoted

the ASEAN Economic Community (AEC) and various formats of East Asian

regionalism, such as the East Asia FTA (EAFTA), the Regional Comprehensive

Economic Partnership (RCEP), and the Comprehensive Economic Partnership in

East Asia (CEPEA). Recent issues related to East Asian regionalism include wh ether

the AEC will be achieved by the end of 2015, and whether ASEAN’s new initiative,

the RCEP, will be feasible under ASEAN’s current approach to regionalism[1].

While various regional initiatives implemented by ASEAN can be evaluated

positively, ASEAN has not been successful in achieving deeper economic integration

according toa midterm evaluation report by theEconomic Research Institute forASEAN

The International Journal of

Logistics Management

Vol. 26 No. 3, 2015

pp. 479-493

©Emerald Group Publis hing Limited

0957-4093

DOI 10.1108/IJLM-08-2013-0092

Received 15 August 2013

Revised 5 April 2014

12 June 2014

Accepted 10 August 2014

The current issue and full text archive of this journal is available on Emerald Insight at:

www.emeraldinsight.com/0957-4093.htm

479

Implications

for maritime

logistics

reforms