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East Asian Economic Integration and its Impact on Future Growth

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  • Philippa Dee

Abstract

Two propositions appear to be gaining wide currency, given the revealed preference for preferential trade agreements (PTAs) in the East Asian region and elsewhere. The first is that economic integration is a good way to promote economic growth. The second is that PTAs, particularly ones that go beyond goods trade, are an effective way to promote economic integration. Yet both propositions are empirical questions. In this paper, a partial evaluation of the evidence suggests caution is called for. Current PTAs appear to be doing little to remove the important impediments to growth in the region. Far greater income gains would come from comprehensive reform of nondiscriminatory impediments to competition, as part of a thorough-going program 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.

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File URL: http://crawford.anu.edu.au/pdf/pep/pep-350.pdf
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Bibliographic Info

Paper provided by Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University in its series Asia Pacific Economic Papers with number 350.

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Length: 20 pages
Date of creation: 2005
Date of revision:
Handle: RePEc:csg:ajrcau:350

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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," Asia Pacific Economic Papers 349, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
  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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Citations

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Cited by:
  1. Peter DRYSDALE & Shiro ARMSTRONG, 2010. "International and Regional Cooperation: Asia's Role and Responsibilities," Asian Economic Policy Review, Japan Center for Economic Research, vol. 5(2), pages 157-173, December.
  2. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.
  3. 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.
  4. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
  5. 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.
  6. 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.
  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 & Christopher Findlay, 2006. "Trade Facilitation: What, Why, How, Where and When?," IDB Publications 47558, Inter-American Development Bank.
  9. 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.
  10. Philippa Dee & Christopher Findlay, 2006. "Trade Facilitation: What, Why, How, Where and When?," IDB Publications 47578, Inter-American Development Bank.
  11. Baldwin, Richard, 2010. "Sequencing regionalism: Theory, European practice, and lessons for Asia," CEPR Discussion Papers 7852, C.E.P.R. Discussion Papers.
  12. 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.

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