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Catching Up of Manufacturing Cum De Facto Economic Integration in East Asia

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Abstract

Several factors, including the tariff reduction inherent in WTO commitments, recent advancements in telecommunication, and large improvement of infrastructure, have led to a significant reduction in East Asian transportation costs, in the broad sense of the term. The reduction of transportation costs has expanded the cross-border economic activities by multinational corporations (MNCs) within the region. This has formed the production/distribution networks, discussed in Chapter 1, on the one hand, and catalyzed the catching up in manufacturing by the latecomers with the earlier starters on the other. Overall this phenomenon has advanced East Asia’s de facto integration.

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© 2006 Institute of Developing Economies (IDE), JETRO

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Hiratsuka, D. (2006). Catching Up of Manufacturing Cum De Facto Economic Integration in East Asia. In: Hiratsuka, D. (eds) East Asia’s De Facto Economic Integration. IDE-JETRO Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230627673_5

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