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East Asian Economic Integration and its Impact on Future Growth

  • Philippa Dee

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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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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  1. Arief Ramayandi, 2005. "ASEAN Monetary Cooperation : Issues and Prospects," Finance Working Papers 22028, 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. David Vanzetti & Greg McGuire, 2005. "Trade Policy At The Crossroads – The Indonesian Story," UNCTAD Blue Series Papers 28, United Nations Conference on Trade and Development.
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