Ganeshan Wignaraja

About Ganeshan Wignaraja

Ganeshan Wignaraja is Director of Research of the Asian Development Bank Institute (ADBI). Previously, he was a principal economist at the Asian Development Bank, a manager in a UK economics consulting firm, and has held research positions at Oxford University as well as the OECD. Dr. Wignaraja has published widely on trade and competitiveness, regional economic integration, industrial technology, and development strategy.
Author Archive | Ganeshan Wignaraja
Trade

Is finance a binding constraint for SME participation in trade in Asia?

Is finance a binding constraint for SME participation in trade in Asia?
Small and medium-sized enterprises (SMEs) are a very important part of Asia’s economy. In this article, we explore SMEs and their financing issues with respect to the performance of SMEs in international trade, based on the sample of more than 8,000 companies across the People’s Republic of China (PRC) and Association of Southeast Asian Nations (ASEAN) member states. The discussion is derived from a recent Asian Development Bank Institute (ADBI) working paper (Jinjarak, Mutuc, and Wignaraja 2014). Read more.
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Trade

Back on track? The importance of the Bali Package for the WTO and global trade

Back on track? The importance of the Bali Package for the WTO and global trade
After several days of grueling negotiations the Ninth WTO Ministerial Conference in Bali, Indonesia, in December 2013, adopted the Bali Package aimed at mainly streamlining global trade. However, this is only the first step toward a Doha deal and much work remains to re-formulate a post-Bali agenda, as well as reform of the WTO to restore its relevance as a key pillar of multilateral trade relations. Read more.
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Trade

Why Indian business should embrace the RCEP

Why Indian business should embrace the RCEP?
Mega regional trade deals are in vogue in a fragile world economy as a means to spur trade and growth. Asia’s mega regional trade deal—the Regional Comprehensive Economic Partnership (RCEP), which includes India—is quietly being negotiated. But it deserves more press because the RCEP would create the world’s largest trading bloc and have major implications for Asian countries and the world economy. India is an important player in the RCEP negotiations but some Indian businesses are concerned about the prospect of further Indian trade with, particularly imports from, the People’s Republic of China (PRC). What would the RCEP cover and will Indian business benefit? What are the barriers to success and what should be done to overcome the hurdles? Read more.
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Trade

Policy challenges posed by Asian FTAs

Policy Challenges Posed by Asian FTAs
Asian economies face important policy challenges regarding the use of free trade agreements (FTAs): primarily their scope and their impact on regionalization trends. These topics are the front line of contemporary negotiations and of interest to policymakers. This column examines these challenges based on new data on the business impacts of FTAs and contents of existing FTAs. It also discusses political economy considerations of FTA consolidation in Asia and its potential connection with North America and Europe. Asia’s rise as the “global factory” over the past several decades was underpinned by outward-oriented development strategies and multilateralism. FTAs, as trade-policy instruments in the region, were largely absent until the 1990s. Read more.
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Trade

Openness and infrastructure are key to growth in Indonesia

Openness and infrastructure are key to growth in Indonesia
Slowing growth and rising unemployment sometimes induce economies to become more inward-oriented with restrictive policies. Indonesia shows early signs of such tendencies and its future growth may be at risk. The experience of high performing East Asian economies, however, suggests that outward-oriented policies and infrastructure investment support sustainable growth. Indonesia’s growth slowed to 6.2% in 2012 from 6.5% in 2011. Its growth in the previous decade was below 6%. A slight dip notwithstanding, a turnaround seems to be continuing in this resource-rich economy once seen by the West as a basket case of crony capitalism during the 1997–1998 Asian financial crisis. Read more.
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Trade

PRC and India: pursuing the same approach to free trade agreements?

Deep free trade agreements (FTAs) are key to trade-led growth in Asia. Deep FTAs can support a comprehensive regional agenda for liberalization covering reductions in barriers to goods and services trade as well as opening new areas beyond the current purview of WTO negotiations (like investment, trade facilitation, competition, government procurement and intellectual property). Deep agreements can also help lock in structural reforms at national-level and promote implementation of second generation reforms. Accordingly, deep FTAs are useful for opening markets and removing obstacles to the spread of production networks throughout Asia and the Pacific. The depth of FTAs among Asia’s developing giants—the People’s Republic of China (PRC) and India—is a topical issue. Read more.
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Governance

Asia’s growth, production networks, and SMEs

Asia’s growth, production networks, and SMEs
The escalating Eurozone crisis and signs of spluttering world growth have put Asia and its manufacturing enterprises into the spotlight again. Part of Asia’s rapid trade-led growth over several decades is associated with production networks and a regional division of labor. An expanding literature suggests that the region’s trade is increasingly made up of growing intraregional trade in intermediate inputs (Athukorala 2011). Production activities are increasingly being geographically fragmented across countries and linked by a dense network of trade in intermediate goods (Baldwin 2008). Small- and medium-sized enterprises (SMEs) are viewed as the backbone of national economic development in many Asian economies, accounting for the majority of firms and a large share of employment (Harvie 2010). Read more.
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Trade

Dealing with the “noodle bowl” of Asia’s free trade agreements

East Asia’s attitude toward free trade agreements (FTAs) has changed. Slow progress in global trade talks has led to a surge in FTAs across Asia. With the World Trade Organization (WTO) Doha Round trade talks stalled, Asian countries see FTAs as a way of liberalizing trade and investment and sustaining economic recovery. The number of signed and implemented FTAs in the region has increased from three in 2000 to more than 60 in 2012, sparking concerns about an Asian “noodle bowl” of agreements. Critics worry about overlapping rules of origin (ROOs) requirements, which may be costly to business, especially small and medium-sized enterprises (SMEs), and argue that this wave of agreements will undermine the multilateral liberalisation process. A search for pragmatic and innovative ways to untangle the noodle bowl of Asia’s free trade agreements is needed. Read more.
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