FDI, industrial upgrading and economic corridor in Myanmar

Hiroyuki Taguchi () and Ni Lar

MPRA Paper from University Library of Munich, Germany

Abstract: This chapter addresses the issues on inward foreign direct investment (FDI), industrial upgrading, and economic-corridor development in Myanmar. We first present the economic profile of Myanmar by comparing with other economies in Mekong region as well as its brief history. Second, we discuss the role of inward FDI in Myanmar. From a short-term perspective, Myanmar needs to accept inward FDI to participate in international production networks and thus to develop a manufacturing sector. This section represents empirical evidence on the linkage between FDI and the growth of GDP and exports, and investigates a specific issue to be addressed for accepting inward FDI in Myanmar manufacturing sector. Third, from a long-term perspective, we discuss the issues on industrial upgrading and geographical linkage in Myanmar economy. Myanmar now depends heavily on natural resource production in its economy, and also on labor-intensive production in its manufacturing sector. Thus, the industrial reformation should address how to diversify its industries towards a variety of manufacturing sectors and how to upgrade its industries towards upstream and high-valued manufacturing sectors. From the geographical viewpoint, Myanmar also now depends on spot-area development through its SEZ framework. For extending the economic impacts of the SEZ development to nation-wide level, the SEZ development should contribute to an economic corridor approach linked with neighboring countries.

Keywords: FDI; industrial upgrading; economic corridor; Myanmar (search for similar items in EconPapers)
JEL-codes: F23 O53 (search for similar items in EconPapers)
Date: 2015-03
New Economics Papers: this item is included in nep-int and nep-sea
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Citations: View citations in EconPapers (1)

Published in Chapter VI, Progress report on the potentials on the Indochina economic zone (2015): pp. 99-133

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