Abstract
East Asian economies have made the notion of ‘export-led growth’ almost synonymous with ‘development’ over the past forty years. Export-led growth, in turn, has become an indication of growing economic integration with the rest of the world, and has led to the present situation where the emerging economies of East Asia have one of the highest export/GDP ratios of any grouping of countries in the world, at 41 per cent, and where East Asia, including Japan, now accounts for one-quarter of the world’s exports. Given this success, economic integration seems to be a well-established phenomenon in the region.
The authors (hkharas@worldbank.org, ealdazcarroll@worldbank.org, srahardja@worldbank.org) would like to thank Swati Ghosh and Arvind Gupta for helpful comments. Thanks are also due to Walter Meza-Cuadra, Radu Tatucu, Santiago Gomez and Antonio Ollero for their research assistance. The findings, interpretations and conclusions in this chapter are those of the authors; they do not necessarily represent the views of the World Bank, its Executive Directors, or the countries that they represent and should not be attributed to them.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Asian Development Bank (2005) Asian Economic Cooperation and Integration: Progress, Prospects, and Challenges.
Ando, M. and F. Kimura (2003) ‘The Formation of International Production and Distribution Networks in East Asia’, NBER Working Paper Series 10167, December.
Athukorala, P. and N. Yamashita (2005) ‘Production Fragmentation and Trade Integration: East Asia in a Global Context’, ANU Working Papers in Trade and Development 2005. Available at http://rspas.anu.edu.au/economics/publish/papers/wp2005/wp-econ-2005–07.pdf.
Bhagwati, J. (1984) ‘Splintering and Disembodiment of Services and developing Nations’, The World Economy, June.
Batra, A. (2004) ‘India’s Global Trade Potential: The Gravity Model Approach’, Indian Council for Research on International Economic Relations. New Delhi, India.
Beale, L., A. Ferrando, P. Hördahl, E. Krylova and C. Monnet (2004) ‘Measuring Financial Integration in the Euro Area’, European Central Bank, occasional paper series no.14, April.
Bekaert, G., C. R. Harvey and C. T. Lundblad (2003) ‘Equity Market Liberalization in Emerging Markets’ Journal of Financial Research, vol. 26, no. 3, pp. 275–99.
Bekaert, G., C.R. Harvey, and A. Ng. (2005) ‘Market Integration and Contagion’, Journal of Business, vol. 78, no. 1, pp. 39–69.
Brooks, R. and M. Del Negro (2003) ‘Country Versus Region Effects in International Stock Returns’, Federal Reserve Bank of Atlanta, Working Paper no. 2002–20a.
Brouwer, Gordon de. (2003) ‘Financial Markets, Institutions, and Integration in East Asia’, Asian Economic Papers, 2:1 pp 53–80.
Dee, P. (2004a) ‘Cost of Services Trade Restrictions in Thailand’, background report of the ‘Productivity and Investment Climate Assessment in Thailand’. A World Bank Study for the National Economic and Social Development Board (NESDB), in collaboration with the Foundation for Thailand Productivity Institute (FTPI) Poverty Reduction, Economic Management and Financial Sector Unit (PREM) Washington, DC.
— (2004b) ‘Measuring the Cost of Regulatory Restrictions on Services Trade in Malaysia’ A background report to the Study on ‘Improving the investment Climate by Reducing the Regulatory Burden in Malaysia’, a World Bank Study for the Economic Planning Unit (EPU), Malaysia, Poverty Reduction, Economic Management and Financial Sector Unit (PREM), East Asia and Pacific Region, Washington, DC.
Eichengreen, B., Y. Rhee, and H. Tong (2004) ‘The impact of China on the Exports of Other Asian Countries’, NBER Working Paper No. 10768. National Bureau of Economic Research. Cambridge, Mass.
Eschenbach, F., and J. F. Francois (2002) ‘Financial Sector Competition, Services Trade, and Growth’, CEPR Discussion Paper No. 3573.
Frankel, J. A., E. Stein and S. -J. Wei (1997) ‘Continental Trading Blocks: Are they Natural or Supernatural?’ in Jeffrey A. Frankel (ed.), The Regionalization of the World Economy, University of Chicago Press, Chicago and London, pp. 91–120.
Frankel, Jeffrey A. and Shang-Jin, Wei (1993) ‘Trade Blocs and Currency Blocs’ (1993–04–01). NBER Working Paper No. W4335. Available at SSRN: http://ssrn.com/abstract=227026.
Francois, J. F., and L. Schuknecht (2002) ‘International Trade in Financial Services, Competition, and Growth Performance’, CIES Working Paper No. 6.
Gaulier, G., F. Lemoine and D. Unal-Kesenci (2005) ‘China’s Integration in East Asia: Production Sharing, FDI & High-Tech Trade’, Working Papers 2005–09, CEPII Research Centre.
Heston, S. L., and K. Geert Rouwenhorst (1994) ‘Does Industrial Structure Explain the Benefits of International Diversification?’, Journal of Financial Economics, no. 36, pp. 3–27.
Hummels, D. (1999) ‘Have International Transportation Costs Declined?’, University of Chicago, Chicago, IL
Japanese Ministry of Economy Trade and Industry (2005) White Paper on International Economy and Trade 2005, Overview: Towards a New Dimension of Economic Prosperity in Japan and East Asia, Japan. http://www.meti.go.jp/english/report/data/gIT05maine.html.
Kawai, M. (2005) ‘East Asian Economic Regionalism: Progress and Challenges’, Journal of Asian Economics, vol. 16, pp. 29–55.
Kawai, M., and S. Urata (2004) ‘Trade and Foreign Direct Investment in East Asia’, in: Economic Linkages and Implications for Exchange Rate Regimes in East Asia, edited by G. de Brouwer and M. Kawai, 15–102. London and New York: Routledge Curzon.
Lemoine, F. and D. Unal-Kesenci (2002) ‘China in the International Segmentation of Production Processes’ Paris, Centre d’Etudes Prospectives et al. Information Working Paper 2002–02, March.
Mattoo, A., R. Rathindran and A. Subramanian (2001) ‘Measuring Services Trade Liberalization and its Impact on Economic Growth: An Illustration’ World Bank Policy Research Working Paper No. 2655.
Mayer, J., A. Butkevicius, and A. Kadri (2002) ‘Dynamic Products in World Exports’, UNCTD. Discussion Papers No. 159. United Nations Conference on Trade and Development. Geneva, Switzerland.
Network China (2005) ‘China: World’s Next Big Source of FDI’, http://networkchina.iesingapore.corn/cnn/news/index.crm?luseaction=viewContent&Cat=10&ID=1005&viewmonth=9–2005.
Ng, A. (2000) ‘Volatility Spillover Effects from Japan and the US to the Pacific-Basin’, Journal of International Money and Finance, vol. 19, pp. 207–233.
Ng, F. and A. Yeats (2003) ‘Major Trade Trends in East Asia: What Are Their Implications for Regional Cooperation and Growth?’, Policy Research Working Paper 3084. World Bank, Washington, DC.
Panagariya, A. (2004) ‘India’s Trade Reform’, India Policy Forum, xxvi, pp. 1–67.
Rajan, R. (2004) ‘FDI, Trade and the Internationalization of Production in the Asia-Pacific Region: Issues and Policy Conundrums’, NUS Working Paper SPP-01–05. Available at http://www.spp.nus.edu.sg/docs/wp/wp0501b.pdf.
Rose, A. (2004) ‘Do we Really Know that the WTO Increases Trade?’, American Economic Review, vol. 94. 1: 98–114.
Virmani, A. (2005) ‘A Tripolar Century: USA, China, and India’, ICRIER working paper no. 160.
World Bank (2002) Global Economic Prospects: Making Frade Work for the World’s Poor. Washington, DC.
— (2003) East Asia Integrates. Homi Kharas and Kathie Krum (eds). Washington, DC, pp. 1–264.
— (2004a) East Asia and Pacific Regional Brief. Poverty Reduction Economic Management. East Asia and Pacific Region, April. Washington, DC.
— (2004b) Sustaining India’s Services Revolution: Access to Foreign Markets, Domestic Reform and International Negotiations, chapter 1 ‘The Remarkable Dynamism of India’s Services Sector’, Washington DC, pp. 1–60.
Editor information
Editors and Affiliations
Copyright information
© 2008 Institute of Developing Economics (IDE), JETRO
About this chapter
Cite this chapter
Kharas, H., Aldaz-Carroll, E., Rahardja, S. (2008). East Asia: Regional Integration among Open Economies. In: Fujita, M. (eds) Economic Integration in Asia and India. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230591004_2
Download citation
DOI: https://doi.org/10.1057/9780230591004_2
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-35590-7
Online ISBN: 978-0-230-59100-4
eBook Packages: Palgrave Economics & Finance CollectionEconomics and Finance (R0)