|61Forthisindex,theregionof"Asia"includes<sup>China,Japan,Malaysia,Pakistan, RepublicofKorea,</sup><br>|
|---|
|Singapore,Taiwanand Thailand and"SEAsia"<sup>includesthedeveloping countriesofSouth, Eastand</sup>|
|SoutheastAsia(i.e.,excludes Japan).|

62 See Table S.3 in appendix for list of member<sup>countries.</sup> 63 Hong Kong is also included as a top investor<sup>in thattable but is not includedin the definitionof "Asia"</sup> for the intensity index calculation. 6UNCTAD (2001: 24). **65** UNCTAD (1999a: 14). 66 UNCTAD (2002a: 9). 67 UNCTAD (2002a: 9). 68 Scollay and Gilbert (2001: 19) and Ethier<sup>(1998).</sup> 69 A complete list of all such agreements worldwide<sup>can befound inthe sourcedocumentindicated at the</sup> bottom of this appendix table.

**70** Table A.6 shows only signed and adopted<sup>agreements and Table A.7shows only agreementssince1995.</sup>

71 Services, e.g., transportation and communications,<sup>are increasinglyimportanttoday as they link the</sup> various segments of production networks<sup>worldwide.[See Jonesand Kierzkowski (2001)for a discussion</sup> of this issue.] 72 "Agreement Between the Republic of<sup>SingaporeandJapanfor a New-AgeEconomic Partnership,"</sup> January 2002; Rajan and Sen (2002).

Yamazawa (2001: 20).

74 According to Senior Secretary to the President<sup>for EconomicAffairsHyun Jung-Taik,thesethree</sup> countries (Japan, Singapore and Mexico) cause<sup>theleast concernin terms of agriculturalissuesfor South</sup> Korea. [Speech at Seoul National University<sup>in November2002 (Kim, 2002).]</sup> 75 The achievements of AIA are mainly in<sup>thearea of globalmissions to promote theregion, establishment</sup> of a database of part and component manufacturers,<sup>provision of accesstoinvestment/businessinformation</sup> on the region, convening regular fora with business<sup>organizations, capacity building through training</sup> workshops, and others (ASEAN 2000a). Completed<sup>projectsunder APEC'sCollectiveActionPlanon</sup> Investment (for 1996-2000) include publication<sup>of aninvestment guidebook,compilation of a compendium</sup> of initiatives and strategies of FDI stakeholders,<sup>organizationof investment symposia,establishmentof</sup> policy dialogues to review various investment<sup>regimesandinvestment aspectsof FTAs, studiesof</sup> investment liberalization, and the conduct of<sup>severaltrainingprogramsand seminars(Austria2001).</sup> 76 The degree to which incentives affect investment<sup>decisionsis uncertain.;however,theyhave been</sup> important in the investment strategies of some<sup>developingcountries, particularlyinattracting export-</sup> oriented FDI. [See UNCTAD (2002c: 204-208).] 77 See Table G.2 in the General Appendix for a<sup>descriptionof various types of tradearrangementsand</sup> Table G.3 for a list of recent RTAs in the<sup>Asia-Pacificregion.</sup> 78 See Drysdale (2001), Frankel (1997), Scollay<sup>andGilbert (2001), Panagariya(1999),Low(2001),and</sup> Mistry (2000).

79Scollay and Gilbert (2001: 19-20) 0Phrasing that was first coined by Bhagwati<sup>(1991: 77)and popularizedby others.</sup>

**81** RTAs can overlap and adopt complex and inconsistent<sup>rules of origin that add cost and result in</sup> inefficiencies. This phenomenon was first<sup>described by Bhagwati, Greenaway, andPanagariya(1998).</sup> **82** See Panagariya (1999), Drysdale (2001)<sup>and Scollayand Gilbert (2001).</sup>

**83** Rose uses a standard "gravity" model of bilateral<sup>merchandisetrade anda largepanel data set covering</sup> over 50 years and 175 countries.

4Rose (2002: 1) 85 GSP (Generalized System of Preferences) is<sup>a systemusedby many developedcountriestohelp</sup> developing nations improve their financial or<sup>economiccondition throughexports. In effect,it providesfor</sup> the duty-free importation of a wide range of<sup>products thatwould otherwise be subject tocustoms duty if</sup> imported from non-GSP-status countries.<sup><http://www.customs.ustreas.gov/travel/gsp.htm#Whatis GSP></sup> 86 In addition to a theoretical discussion of the effects<sup>of RIAs on FDI decisions,thestudy examines three</sup> specific cases of North-North (Canada-U.S. Free<sup>TradeAgreement),North-South(Mexicowithin NAFTA)</sup> and South-South (MERCOSUR) integration.

87 Blomstr6m and Kokko (1997: 41)

**88** UNCTAD (2002b: 65)

123