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Intra-regional trade between China, Japan, and Korea : before and after the financial crisis

  • Kuroiwa, Ikuo
  • Ozeki, Hiromichi

East Asian economies have been heavily dependent on the U.S. and EU markets, especially for the export of final goods. Therefore, once the financial crisis hit Western economies hard, the East Asian economies lost their major markets.Their production networks then worked to the region's disadvantage and stifled industrial development.This reflects the vulnerability of the East Asian economies which have adopted an export-led growth strategy. Such vulnerability needs to be addressed to prevent future economic crises, as well as to sustain economic growth. This paper examines the trade structure of the three countries-China, Japan, and Korea-before and after the Lehman Shock, and discusses how the three countries should cooperate in addressing imbalances in the trade structure.

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Paper provided by Institute of Developing Economies, Japan External Trade Organization(JETRO) in its series IDE Discussion Papers with number 237.

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Date of creation: May 2010
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Publication status: Published in IDE Discussion Paper. No. 237. 2010. 5
Handle: RePEc:jet:dpaper:dpaper237
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