Trade, Resources And Development: The Implications Of Asian Integration
The increasing integration of Asian economies has fueled a period of sustained economic growth for the region as a whole relative to the rest of the world, and for individual Asian economies. This growth has been supported by three phenomena: global demand growth; elastic supplies of labor and other inputs, and substantially lower costs of international trade and business. The latter trend has accelerated a very specific form of economic integration, the vertical unbundling (or "fragmentation") of production tasks (Jones 2000). Fragmentation has reduced total production costs by permitting the cost-minimizing allocation of tasks among regions, regardless of national boundaries and even of distance. At a global scale, fragmentation trade is associated with the "offshoring" of labor-intensive tasks from high-wage to low-wage countries (Grossman and Rossi-Hansberg 2006). Within developing Asia, it has led to the division of tasks among countries with similar factor endowments, based on the establishment of specialized niche industries with lower costs. This effect has been central to the integration of Asia's economies: "parts and components" is the largest and the fastest-growing form of intraregional trade.
|Date of creation:||Jul 2010|
|Date of revision:||Jul 2010|
|Contact details of provider:|| Web page: http://www.eepsea.org|
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:eep:tpaper:sp201007s1. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Arief Anshory yusuf)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.