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East Asian Economic Integration and its Impact on Future Growth

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  • Philippa Dee

Abstract

Two presumptions appear to underlie recent proposals for East Asian economic integration. The first is that economic integration is a good way to promote economic growth. The second is that preferential trade agreements (PTAs), particularly ones that go beyond goods trade, are an effective way to promote economic integration. Both these presumptions are empirical questions. In this paper, a partial evaluation of the evidence suggests caution. Even a broadranging PTA may do little to remove the important impediments to growth in the region. Far greater income gains would come from comprehensive reform of non-discriminatory impediments to competition, as part of a thorough-going programme of unilateral domestic regulatory reform. It may be time to rethink East Asian economic integration as a policy priority, or at least review the way in which it might be pursued. Copyright 2006 The Author Journal compilation 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal World Economy.

Volume (Year): 30 (2007)
Issue (Month): 3 (03)
Pages: 405-423

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Handle: RePEc:bla:worlde:v:30:y:2007:i:3:p:405-423

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References

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  1. David Vanzetti & Greg McGuire & Prabowo, 2005. "Trade Policy at the Crossroads: The Indonesian Story," Asia Pacific Economic Papers 347, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  2. Arief Ramayandi, 2005. "ASEAN Monetary Cooperation : Issues and Prospects," Finance Working Papers 22028, East Asian Bureau of Economic Research.
  3. Dollar, David & Micco, Alejandro & Clark, Ximena, 2002. "Maritime transport costs and port efficiency," Policy Research Working Paper Series 2781, The World Bank.
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Cited by:
  1. Baldwin, Richard, 2010. "Sequencing regionalism: Theory, European practice, and lessons for Asia," CEPR Discussion Papers 7852, C.E.P.R. Discussion Papers.
  2. Jacob Funk Kirkegaard, 2012. "Transactions: A New Look at Services Sector Foreign Direct Investment in Asia," Working Paper Series WP12-16, Peterson Institute for International Economics.
  3. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
  4. Rolf J. Langhammer, 2007. "Sectoral Distortions and Service Protection in Russia. A Comparison with Benchmark Emerging Markets and EU Accession Candidates," Kiel Working Papers 1385, Kiel Institute for the World Economy.
  5. Hiro Lee & Robert F. Owen & Dominique van der Mensbrugghe, 2008. "Regional Integration in Asia and Its Effects on the EU and North America," OSIPP Discussion Paper 08E012, Osaka School of International Public Policy, Osaka University.
  6. Peter Drysdale & Shiro Armstrong, 2010. "International and Regional Cooperation : Asia's Role and Responsibilities," EABER Working Papers 22763, East Asian Bureau of Economic Research.
  7. Lee, Hiro & Owen, Robert F. & van der Mensbrugghe, Dominique, 2009. "Regional integration in Asia and its effects on the EU and North America," Journal of Asian Economics, Elsevier, vol. 20(3), pages 240-254, May.
  8. Philippa Dee, 2008. "The role of microeconomic policy reform in regional integration  analytical and empirical issues," EABER Working Papers 21793, East Asian Bureau of Economic Research.
  9. Rolf J. Langhammer, 2006. "Service Trade Liberalization as a Handmaiden of Competitiveness in Manufacturing: An Industrialized or Developing Country Issue?," Kiel Working Papers 1293, Kiel Institute for the World Economy.
  10. Hiro Lee & Dominique van der Mensbrugghe, 2007. "Regional Integration, Sectoral Adjustments and Natural Groupings in East Asia," OSIPP Discussion Paper 07E008, Osaka School of International Public Policy, Osaka University.
  11. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.

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