IDEAS home Printed from https://ideas.repec.org/p/eti/dpaper/04012.html
   My bibliography  Save this paper

The Shift from "Market-led" to "Institution-led" Regional Economic Integration in East Asia in the late 1990s

Author

Listed:
  • Shujiro Urata

Abstract

The paper identifies the changes in the nature of regional economic integration in East Asia from "market-led" to "institution-led" integration in the late 1990s. Before the late 1990s active foreign trade and foreign direct investment (FDI) mainly resulting from trade and FDI liberalization led to greater intra-regional dependence among the countries in East Asia. Indeed, regional production systems have been developed in industries such as electronics, automobiles, and apparel, mainly by the initiatives of foreign companies. After the late 1990s East Asian countries started to show strong interest in regional institutions such as free trade agreements (FTAs) largely because of the outbreak of Asian crisis and growing interest in FTAs in other parts of the world. FTAs are likely to bring economic, political, social and other types of benefits to the region and the rest of the world, but there exist various obstacles to the formation of FTAs. Some serious obstacles are strong opposition to trade and FDI liberalization by non-competitive sectors and a lack of mutual understanding about historic, political, and other issues among East Asian countries. The paper makes several propositions such as increasing mutual exchange of people to overcome these obstacles.

Suggested Citation

  • Shujiro Urata, 2004. "The Shift from "Market-led" to "Institution-led" Regional Economic Integration in East Asia in the late 1990s," Discussion papers 04012, Research Institute of Economy, Trade and Industry (RIETI).
  • Handle: RePEc:eti:dpaper:04012
    as

    Download full text from publisher

    File URL: https://www.rieti.go.jp/jp/publications/dp/04e012.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey A. Frankel, 1993. "Is Japan Creating a Yen Bloc in East Asia and the Pacific?," NBER Chapters, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 53-88, National Bureau of Economic Research, Inc.
    2. Jeffrey Frankel & Miles Kahler, 1993. "Regionalism and Rivalry: Japan and the United States in Pacific Asia," NBER Books, National Bureau of Economic Research, Inc, number fran93-1.
    3. Shujiro Urata & Kozo Kiyota, 2003. "The Impacts of an East Asia FTA on Foreign Trade in East Asia," NBER Working Papers 10173, National Bureau of Economic Research, Inc.
    4. Gereffi, Gary, 1999. "International trade and industrial upgrading in the apparel commodity chain," Journal of International Economics, Elsevier, vol. 48(1), pages 37-70, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Tereso S. Tullao, Jr, . "An Integrative Report," Chapters, in: Tereso S. Tullao, Jr. & Lim Hong Hin (ed.), Developing ASEAN Economic Community (AEC) into a Global Service Hub, chapter 1, pages 1-64, Economic Research Institute for ASEAN and East Asia (ERIA).
    2. Julia Kubny & Florian Mölders & Peter Nunnenkamp, 2011. "Regional Integration and FDI in Emerging Markets," Chapters, in: Ulrich Volz (ed.), Regional Integration, Economic Development and Global Governance, chapter 8, Edward Elgar Publishing.
    3. Vlatka Bilas & Sanja Franc, 2010. "Globalization, Regionalization and Information-Communication Convergence of Africa," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 8(2), pages 104-118.
    4. Giovanni Capannelli & Carlo Filippini, 2010. "Economic Integration In East Asia And Europe: Lessons From A Comparative Analysis," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(01), pages 163-184.
    5. Capannelli, Giovanni & Filippini, Carlo, 2009. "East Asian and European Economic Integration: A Comparative Analysis," Working Papers on Regional Economic Integration 29, Asian Development Bank.
    6. Sanchita Basu & Aekapol Chongvilaivan, 2010. "Rationale for Free Trade Agreements (FTAs) in Southeast Asia," Chapters, in: Rajah Rasiah & Johannes Dragsbaek Schmidt (ed.), The New Political Economy of Southeast Asia, chapter 8, Edward Elgar Publishing.
    7. Rajah Rasiah & Johannes Dragsbaek Schmidt (ed.), 2010. "The New Political Economy of Southeast Asia," Books, Edward Elgar Publishing, number 14019.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jeffrey A. Frankel & Shang-Jin Wei, 1994. "Yen Bloc or Dollar Bloc? Exchange Rate Policies of the East Asian Economies," NBER Chapters, in: Macroeconomic Linkage: Savings, Exchange Rates, and Capital Flows, pages 295-333, National Bureau of Economic Research, Inc.
    2. Kim, Bong-Han & Kim, Hyeongwoo & Min, Hong-Ghi, 2013. "Reassessing the link between the Japanese yen and emerging Asian currencies," Journal of International Money and Finance, Elsevier, vol. 33(C), pages 306-326.
    3. Jeffrey A. Frankel & Shang-Jin Wei, 2007. "Assessing China's exchange rate regime [‘Working with the IMF to strengthen exchange rate surveillance’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 22(51), pages 576-627.
    4. Lee, Hiro & Roland-Holst, David W., 1998. "Prelude to the pacific century: Overview of the region, leading issues, and methodology," MPRA Paper 82339, University Library of Munich, Germany.
    5. Swapan K. Bhattacharya & Gouranga G. Das, 2014. "Can South–South Trade Agreements Reduce Development Deficits?," Journal of South Asian Development, , vol. 9(3), pages 253-285, December.
    6. Khan, Imran Ullah & Kalirajan, Kaliappa, 2011. "The impact of trade costs on exports: An empirical modeling," Economic Modelling, Elsevier, vol. 28(3), pages 1341-1347, May.
    7. Aggarwal, Raj & Mougoue, Mbodja, 1996. "Cointegration among Asian currencies: Evidence of the increasing influence of the Japanese yen," Japan and the World Economy, Elsevier, vol. 8(3), pages 291-308, September.
    8. Bowman, Chakriya, 2005. "Yen bloc or koala bloc? Currency relationships after the East Asian crisis," Japan and the World Economy, Elsevier, vol. 17(1), pages 83-96, January.
    9. Cohen, Benjamin J., 2014. "Will History Repeat Itself? Lessons for the Yuan," ADBI Working Papers 453, Asian Development Bank Institute.
    10. David H. Bearce & Eric O'N. Fisher, 2002. "Economic Geography, Trade, and War," Journal of Conflict Resolution, Peace Science Society (International), vol. 46(3), pages 365-393, June.
    11. Endoh, Masahiro, 1999. "The transition of postwar Asia-Pacific trade relations," Journal of Asian Economics, Elsevier, vol. 10(4), pages 571-589.
    12. Jong‐Wha Lee & Innwon Park, 2005. "Free Trade Areas in East Asia: Discriminatory or Non‐discriminatory?," The World Economy, Wiley Blackwell, vol. 28(1), pages 21-48, January.
    13. Dieter Schumacher, 2001. "Market Size and Factor Endowment: Explaining Comparative Advantage in Bilateral Trade by Differences in Income and Per Capita Income," Discussion Papers of DIW Berlin 259, DIW Berlin, German Institute for Economic Research.
    14. Rahul Sen & Sadhana Srivastava & Don Webber, 2015. "Preferential trading agreements and the gravity model in presence of zero and missing trade flows: Early results for China and India," Working Papers 2015-02, Auckland University of Technology, Department of Economics.
    15. Jeffrey A. Frankel and Shang-Jin Wei., 1996. "ASEAN in a Regional Perspective," Center for International and Development Economics Research (CIDER) Working Papers C96-074, University of California at Berkeley.
    16. Benassy-Quere, Agnes & Coeure, Benoit & Mignon, Valerie, 2006. "On the identification of de facto currency pegs," Journal of the Japanese and International Economies, Elsevier, vol. 20(1), pages 112-127, March.
    17. Kaliappa Kalirajan & Swapan Bhattacharya, 2008. "Free Trade Arrangement Between India and Japan: An Exploratory Analysis," Palgrave Macmillan Books, in: Raghbendra Jha (ed.), The Indian Economy Sixty Years After Independence, chapter 8, pages 137-151, Palgrave Macmillan.
    18. Edward D. Mansfield, 1998. "The Proliferation of Preferential Trading Arrangements," Journal of Conflict Resolution, Peace Science Society (International), vol. 42(5), pages 523-543, October.
    19. Agnès Bénassy-Quéré, 1996. "Potentialities and Opportunities of the Euro as an International Currency," Working Papers 1996-09, CEPII research center.
    20. Rahul Sen & Sadhana Srivastava & Don J Webber, 2015. "Effects of preferential trade agreements in the presence of zero trade flows: the cases of China and India," Working Papers 20151507, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eti:dpaper:04012. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: TANIMOTO, Toko (email available below). General contact details of provider: https://edirc.repec.org/data/rietijp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.