Industrialization through Vertical Production Networks: Can Laos Participate?
It is obvious that in East Asia de facto economic integration, whereby the manufacturing production process is split and located across many countries by multinational corporations (MNCs) virtually without any formal integration such as free trade arrangements, is far more advanced than de jure economic integration. Even though the process of de jure, or formal, economic integration in East Asia is still in its early stages, the region had already signed several free trade agreements by the end of 2005, while several others are currently under negotiation.
KeywordsForeign Direct Investment Transportation Cost Trade Volume Trade Cost Economic Integration
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