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East Asian Economic Integration and its Impact on Future Growth

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  • Philippa Dee

    (Crawford School of Economics and Government)

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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Bibliographic Info

Paper provided by East Asian Bureau of Economic Research in its series Development Economics Working Papers with number 21988.

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Date of creation: Jan 2005
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Handle: RePEc:eab:develo:21988

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Postal: JG Crawford Building #13, Asia Pacific School of Economics and Government, Australian National University, ACT 0200
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Keywords: East Asia; economic integration; trade; Growth;

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References

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  1. David Vanzetti & Greg McGuire & Prabowo, 2005. "Trade Policy at the Crossroads - The Indonesian Story," Trade Working Papers 22037, East Asian Bureau of Economic Research.
  2. Dollar, David & Micco, Alejandro & Clark, Ximena, 2002. "Maritime transport costs and port efficiency," Policy Research Working Paper Series 2781, The World Bank.
  3. Arief Ramayandi, 2005. "ASEAN Monetary Cooperation : Issues and Prospects," Finance Working Papers 22028, East Asian Bureau of Economic Research.
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Citations

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Cited by:
  1. 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.
  2. Rolf J. Langhammer, 2008. "Sectoral Distortions and Service Protection in Russia: A Comparison with Benchmark Emerging Markets and EU Accession Candidates," Eastern European Economics, M.E. Sharpe, Inc., vol. 46(6), pages 70-83, November.
  3. 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.
  4. Jane Korinek & Mark Melatos, 2009. "Trade Impacts of Selected Regional Trade Agreements in Agriculture," OECD Trade Policy Papers 87, OECD Publishing.
  5. Shiro Armstrong, 2010. "Taiwan's Asia Pacific Economic Strategies Post-ECFA," EABER Working Papers 22810, East Asian Bureau of Economic Research.
  6. Kirkegaard, Jacob Funk, 2012. "Transactions: A New Look at Service Sector Foreign Direct Investment in Asia," ADB Economics Working Paper Series 318, Asian Development Bank.
  7. Baldwin, Richard E., 2011. "Sequencing Regionalism: Theory, European Practice, and Lessons for Asia," Working Papers on Regional Economic Integration 80, Asian Development Bank.
  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. repec:idb:brikps:47578 is not listed on IDEAS
  10. 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.
  11. 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.
  12. 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.

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