IDEAS home Printed from
MyIDEAS: Login to save this paper or follow this series

Explaining regionalization of trade in Asia Pacific: A transaction cost approach

  • Amelung, Torsten
Registered author(s):

    Recent investigations on the regional distribution of trade flows in the Asia Pacific area suggest that some countries have developed strong bilateral trade links, while others obviously tend to be more closely linked towards trading partners outside the Asia Pacific area (Amelung (1990)). Moreover, empirical findings indicate that there are groups (clusters) of countries in the Asia Pacific area which - in relative terms - trade more intensively with the members of their group than with other countries of this area or the world. For instance, in the eighties there was a clear separation between a South East Asian group of trading partners comprising Singapore, Indonesia, Malaysia and Thailand and a group of North East Asian countries encompassing Korea, Taiwan, Japan, China, Hong Kong and the USA as a non-Asian nation. However, the cluster analysis does not explain why this pattern of regionalization emerges. In economic theory the regionalization of trade flows has been attributed to the. discrimination of countries through legal (El-Agraa (1988), Nienhaus (1987), p. 84) and natural trade barriers (Langhammer (1983), Deardorff (1987)). Following Viner's custom unions theory (Viner (1950)) a group of countries can negotiate preferential ?tariff treatment for their members, thus discriminating against non-member countries. Given such an institutional arrangement regional trade is expected to rise as a consequence of trade creation and trade diversion. Moreover, regionalization of trade flows can be enhanced by differences in transport costs resulting from the spatial remoteness of trading partners. As Deardorff shows, these differentials may affect both the direction and the composition of trade, since they constitute natural trade barriers.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 423.

    in new window

    Date of creation: 1990
    Date of revision:
    Handle: RePEc:kie:kieliw:423
    Contact details of provider: Postal: Kiellinie 66, D-24105 Kiel
    Phone: +49 431 8814-1
    Fax: +49 431 85853
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    as in new window
    1. Amelung, Torsten, 1990. "Economic regions in Asia Pacific: An exercise in regional delimitation," Kiel Working Papers 409, Kiel Institute for the World Economy.
    2. Williamson, Oliver E, 1979. "Transaction-Cost Economics: The Governance of Contractural Relations," Journal of Law and Economics, University of Chicago Press, vol. 22(2), pages 233-61, October.
    3. Warren J Bilkey & George Tesar, 1977. "The Export Behavior of Smaller-Sized Wisconsin Manufacturing Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 8(1), pages 93-98, March.
    4. Warren J Bilkey, 1978. "An Attempted Integration of the Literature on the Export Behavior of Firms," Journal of International Business Studies, Palgrave Macmillan, vol. 9(1), pages 33-46, March.
    5. Lall, Sanjaya & Khanna, Ashok & Alikhani, Iradj, 1987. "Determinants of manufactured export performance in low-income Africa: Kenya and Tanzania," World Development, Elsevier, vol. 15(9), pages 1219-1224, September.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:kie:kieliw:423. 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: (Dieter Stribny)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.