Conflict in the South China Sea and Exports to China Within the Asean-China Free Trade Agreement Framework

DOI

10.2991/assehr.k.210531.066How to use a DOI?

Keywords

ACFTA, Export, Territorial Conflict

Abstract

The ASEAN–China Free Trade Agreement (ACFTA), a regional trade agreement signed in 2004, established free trade for goods among participating countries. The ACFTA removed tariffs on goods beginning in 2010 for trade between ASEAN and China. However, trade cooperation between ASEAN and China has been problematic, involving tensions and disputes between several ASEAN countries and China over territorial claims in the South China Sea. This study aims to analyze the relationship between territorial conflicts in the South China Sea and the export of goods from ASEAN countries to China within the ACFTA framework. This study uses panel data for ten ASEAN countries for the period 2004–2015, and differences-in-differences and regression tests as the methods of analysis. The result of the differences-in-differences method finds that removing the ACFTA tariff in 2010 decreased exports from the countries involved in conflicts. The estimation result finds that the rising intensity of conflicts in the South China Sea significantly reduced exports from ASEAN countries involved in those conflicts to China.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

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

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TY  - CONF
AU  - Muhammad Imam
AU  - Maddaremmeng A. Panennungi
PY  - 2021
DA  - 2021/05/31
TI  - Conflict in the South China Sea and Exports to China Within the Asean-China Free Trade Agreement Framework
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 520
EP  - 530
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.066
DO  - 10.2991/assehr.k.210531.066
ID  - Imam2021
ER  -