Volume 11, Issue 11 (November 2024), Pages: 168-175

----------------------------------------------

 Original Research Paper

The border effect on Vietnam's trade balance with ASEAN countries

 Author(s): 

 Thi Anh Tuyet Le *

 Affiliation(s):

 Faculty of International Economics, Ho Chi Minh University of Banking, Ho Chi Minh City, Vietnam

 Full text

  Full Text - PDF

 * Corresponding Author. 

  Corresponding author's ORCID profile: https://orcid.org/0009-0007-6091-7821

 Digital Object Identifier (DOI)

 https://doi.org/10.21833/ijaas.2024.11.017

 Abstract

This article uses a panel data model, applying both the Fixed Effects Model (FEM) and the Random Effects Model (REM), to analyze how economic scale, tariffs, and geographic location affect Vietnam's trade balance with ASEAN countries. The findings show that the border effect has a stronger influence than other economic factors on Vietnam’s trade balance with these countries. Based on these results, the article suggests strategies for the Vietnamese government and export businesses to reduce the trade deficit with ASEAN nations. The aim is to increase the added value of Vietnam's imports and exports within ASEAN, supporting balanced growth in both intra-ASEAN and external trade.

 © 2024 The Authors. Published by IASE.

 This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/).

 Keywords

 Trade balance, Border effect, Economic scale, Tariff impact, ASEAN trade

 Article history

 Received 14 July 2024, Received in revised form 2 November 2024, Accepted 3 November 2024

 Acknowledgment

No Acknowledgment.

 Compliance with ethical standards

 Conflict of interest: The author(s) declared no potential conflicts of interest with respect to the research, authorship, and/or publication of this article.

 Citation:

 Le TAT (2024). The border effect on Vietnam's trade balance with ASEAN countries. International Journal of Advanced and Applied Sciences, 11(11): 168-175

 Permanent Link to this page

 Figures

 No Figure

 Tables

 Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 

----------------------------------------------   

 References (17)

1. Aba FXL (2021). Institutional change and macroeconomic variables in the ASEAN—Indonesia, Vietnam, and Cambodia: The effects of a trade war between China and USA. Economies, 9(4): 195. https://doi.org/10.3390/economies9040195   [Google Scholar]
2. Alam A, Ma J, Hussain I, and Fazal R (2023). An analysis of the impact of China’s macroeconomic performance on its trade partners: Evidence based on the GVAR model. PLOS ONE, 18(1): e0275859. https://doi.org/10.1371/journal.pone.0275859   [Google Scholar] PMid:36595534 PMCid:PMC9810200
3. Albahouth AA and Tahir M (2024). The relationship between trade openness and FDI inflows: Evidence-based insights from ASEAN region. Economies, 12(8): 208. https://doi.org/10.3390/economies12080208   [Google Scholar]
4. Alessandria G, Choi H, and Lu D (2017). Trade integration and the trade balance in China. IMF Economic Review, 65: 633-674. https://doi.org/10.1057/s41308-017-0036-2   [Google Scholar]
5. Asada H (2020). Effects of foreign direct investment and trade on labor productivity growth in Vietnam. Journal of Risk and Financial Management, 13(9): 204. https://doi.org/10.3390/jrfm13090204   [Google Scholar]
6. Capello R, Caragliu A, and Fratesi U (2018). Measuring border effects in European cross-border regions. Regional Studies, 52: 986-996. https://doi.org/10.1080/00343404.2017.1364843   [Google Scholar]
7. Coughlin CC and Novy D (2021). Estimating border effects: The impact of spatial aggregation. International Economic Review, 62: 1453-1487. https://doi.org/10.1111/iere.12520   [Google Scholar]
8. Duasa J (2007). Determinants of Malaysian trade balance: An ARDL bound testing approach. Global Economic Review, 36: 89-102. https://doi.org/10.1080/12265080701217405   [Google Scholar]
9. Hai THN and Thang ND (2017). The ASEAN free trade agreement and Vietnam’s trade efficiency. Review of Business and Economics Studies, 5: 60-69.   [Google Scholar]
10. He Y and Wang J (2019). A panel analysis on the cross border e-commerce trade: Evidence from ASEAN countries. The Journal of Asian Finance Economics and Business, 6: 95-104. https://doi.org/10.13106/jafeb.2019.vol6.no2.95   [Google Scholar]
11. Hiratsuka D, Hayakawa K, Shiino K, and Sukegawa S (2008). Maximizing benefits from FTAs in ASEAN. In: Corbett J and Umezaki S (Eds.) Deepening East Asian economic integration: 407-545. ERIA Research Project Report 2008-1, Economic Research Institute for ASEAN and East Asia, Jakarta, Indonesia.   [Google Scholar]
12. Itakura K (2013). Impact of liberalization and improved connectivity and facilitation in ASEAN for the ASEAN economic community. ERIA Discussion Paper 1, Economic Research Institute for ASEAN and East Asia, Jakarta, Indonesia.   [Google Scholar]
13. Kawai M and Wignaraja G (2007). ASEAN + 3 or ASEAN + 6: Which way forward? ADBI Discussion Paper 77, Asian Development Bank Institute, Tokyo, Japan.   [Google Scholar]
14. Medeiros E, Guillermo Ramírez M, Ocskay G, and Peyrony J (2021). Covidfencing effects on cross-border deterritorialism: The case of Europe. European Planning Studies 29: 962-982. https://doi.org/10.1080/09654313.2020.1818185   [Google Scholar]
15. Nguyen ML and Bui TN (2021). Trade openness and economic growth: A study on ASEAN-6. Economies, 9(3): 113. https://doi.org/10.3390/economies9030113   [Google Scholar]
16. Nitsch V (2000). National borders and international trade: Evidence from the European Union. Canadian Journal of Economics, 33: 1091-1105. https://doi.org/10.1111/0008-4085.00055   [Google Scholar]
17. To TT (2022). Determinants of trade balance in Vietnam during 1997-2015. International Journal for Applied Information Management, 2(1): 13-25. https://doi.org/10.47738/ijaim.v2i1.23   [Google Scholar]