Abstract
In terms of economic regionalism, East Asia lags far behind other major regions. It was only recently that institutionalization of regional economic integration was started among East Asia countries. However, functional economic integration has continuously proceeded among East Asian economies even without a region-wide RTA. This paper analyzes the trends of functional economic integration both in terms of trade and foreign direct investment (FDI) among East Asian economies, and reviews recent developments of economic regionalism in East Asia. It also addresses the prospects for a region-wide FTA in East Asia and draws some policy implications for East Asian countries at this juncture of economic regionalism in East Asia.
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Notes
Before these new waves of FTAs, three preferential arrangements (the Bangkok Agreement, the Laos-Thailand Preferential Arrangement, and AFTA) were the only regional trade agreements (RTAs) in East Asia.
The trends of the share of intraregional FDI outflows also show a high volatility. For 1990–2003, the share of intraregional FDI outflows increased from 13.9 to 39.0%, while those of the EU and NAFTA changed from 60.2 to 32.2% and from 24.2 to 16.6%, respectively (see Appendix Table 4).
Lee (2003). However, this trilateral summit was not held in 2005 because of aggravated political relations among them.
Switzerland, Iceland, Liechtenstein, and Norway are the members of the European Free Trade Association.
Lee (2004).
ibid.
Shott and Goodrich (2004).
Lee (2002).
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Lee, C.J. Characteristics and prospects for East Asian economic integration: a Korean perspective. Econ Change Restruct 41, 331–344 (2008). https://doi.org/10.1007/s10644-008-9055-3
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DOI: https://doi.org/10.1007/s10644-008-9055-3