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Regional Trading Blocs: Will East Asia Be Next?

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  • Bowles, Paul
  • MacLean, Brian

Abstract

Interest in the possible emergence of an East Asian trading bloc is certainly warranted. However, in the absence of any well-developed theory of regional bloc formation, most economists have studied the question by examining aggregate trade statistics. We argue that these studies provide only a partial picture of the degree to which economic integration is taking place in East Asia. An analysis of capital flows (especially Foreign Direct Investment flows) is also required and the political economy of state action must be explicitly considered. We conclude that an East Asian trading bloc may be an attractive proposition to many countries in the region. We also point to potential obstacles in this process. (c) 1996 Academic Press Limited Copyright 1996 by Oxford University Press.

Suggested Citation

  • Bowles, Paul & MacLean, Brian, 1996. "Regional Trading Blocs: Will East Asia Be Next?," Cambridge Journal of Economics, Oxford University Press, vol. 20(4), pages 393-412, July.
  • Handle: RePEc:oup:cambje:v:20:y:1996:i:4:p:393-412
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    Cited by:

    1. Baharumshah, Ahmad Zubaidi & Haw, Chan Tze & Fountas, Stilianos, 2005. "A panel study on real interest rate parity in East Asian countries: Pre- and post-liberalization era," Global Finance Journal, Elsevier, vol. 16(1), pages 69-85, August.
    2. Kearney, Colm, 1999. "The Asian Financial Crisis," Quarterly Economic Commentary: Special Articles, Economic and Social Research Institute (ESRI), vol. 1999(1-Februar), pages 29-55.

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