The Strategy of Competitiveness of Lower Middle-Income Countries in ASEAN with a Dynamic Panel Approach

Abstract :

Free trade based on a capitalist system has brought the consequences of business competition in the global market for all countries in the world. It opens up equal opportunities for all countries to access markets. Based on the perspective of national resilience, free trade provides opportunities as well as threats to a country's local economy. Economic opportunities are obtaining from the increasingly broad potential of the trade market, which in turn will have an impact on the potential for state revenue from the growing international trade sector. In this case, international trade can support the acceleration of a country's economic growth. For middle-lower income countries, this opportunity becomes a new hope in poverty alleviation efforts, which is the main problem of economic development. But along with economic openness in this globalization era, there are also external challenges that must be responded by each country is facing the free competitive market. A country that has a competitive advantage is higher than in other countries that will be able to take the market opportunity.