Mainland Corridors v.s Maritime Corridors in ASEAN-China Economic Relation

Select Language: Indonesia

Maddaremmeng A. Panennungi

Based on the geography analysis, It is found that the closer relation of China with GMS countries (Mainland Corridors) compared to Malacca Straits countries (Maritime Corridors) during several past decades has potential to marginalize Indonesia, Malaysia, and Singapore in ASEAN (Fau et.al, 2014). This paper is aimed at deepening the analysis of the development in both corridors by emphasizing economic analysis. There are several methods used in this paper: simple statistics, GTAP (Global Trade Analysis Project), and qualitative analysis. This study find out: (1) China economic relation with GMS countries tends to have better progress than with the Malacca Straits Countries. (2) The potential gains from economic integration of China-GMS is higher than China-Malacca Straits Countries. (3) The competition of Malacca Straits countries with the development of alternative trade routes and coupled with the undermining Malacca Straits role in ASEAN under ASEAN-China FTA have potential to isolate Malacca Straits countries in the future.
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