Economic Integration in East Asia: Perspectives from Spatial and Neoclassical Economics

Front Cover
......Page 1
Title Page
......Page 2
List of contributors......Page 3
Contents......Page 4
Preface......Page 8
List of Abbreviations......Page 10
1. Introduction......Page 12
Figure 1.1 Major RTAs in the world......Page 13
NOTES......Page 19
REFERENCES......Page 20
PART I Basic Viewpoints on East Asian Economic Integration......Page 22
2.1 INTRODUCTION......Page 24
2.2.2 The Basic Framework of Spatial Economics......Page 25
2.2.3 Impact of Decreasing Transport Costs (Economic Integration)......Page 28
2.3 REGIONAL INTEGRATION IN EAST ASIA......Page 30
2.4 INDUSTRIAL AGGLOMERATION IN EAST ASIA......Page 38
2.4.1 Automobile Industry......Page 39
2.4.2 Electronics Industry......Page 41
2.4.3 Summary......Page 45
2.5 AGGLOMERATION AND REGIONAL INEQUALITY......Page 46
2.6 CONCLUDING REMARKS......Page 49
NOTES......Page 51
REFERENCES......Page 52
3.1 INTRODUCTION......Page 54
3.2 SPECIALIZATION FORCE......Page 55
3.2.1 Basic Framework......Page 56
3.2.2 Effects of Economic Integration......Page 60
3.2.3 Fragmentation......Page 63
3.3 AGGLOMERATION FORCE......Page 69
3.3.1 Home Market Effects......Page 70
3.3.2 Disparity among Integrated Countries......Page 71
3.3.3 Disparity among Domestic Regions......Page 77
3.4 CONCLUSION......Page 81
NOTES......Page 82
REFERENCES......Page 83
PART II General Views on East Asian Economic Integration......Page 86
4.1 INTRODUCTION......Page 88
4.2 INDUSTRIAL CLUSTERS IN THE ASIAN TRIANGLE......Page 90
4.2.1 The Pearl River Delta Economy......Page 91
4.2.3 The Bohai Rim Economy......Page 92
4.2.5 Hong Kong’s IT Industry: The Free Trade Zone Scheme......Page 93
4.2.7 The High-tech Industrial Development Zone......Page 94
4.2.9 Software Technology Park of India (STPI)......Page 95
4.2.11 Thailand’s Automobile Industry: The Investment Encouragement Law......Page 96
4.2.12 Vietnam’s High-Tech and Software Industries: Task Force for Attracting Foreign Investment......Page 97
4.3 KEYS TO SUCCESSFUL INDUSTRIAL CLUSTERS......Page 98
4.4 FORMATION OF A NETWORK OF MULTINATIONAL VALUE CHAIN MANAGEMENTS......Page 100
4.5 DEVELOPMENT OF CLUSTER-TO-CLUSTER LINKAGES......Page 101
4.6 CLUSTERS IN ASIA AND ASIAN ECONOMIC INTEGRATION......Page 103
ACKNOWLEDGMENT......Page 105
REFERENCES......Page 106
5.1 INTRODUCTION......Page 117
5.2 REGIONAL SYSTEMS, REGIONALIZATION AND REGIONALISM......Page 118
5.3 CHANGES IN THE EAST ASIAN ECONOMY CAUSED BY ASIAN CURRENCY CRISIS......Page 120
5.4 DEVELOPMENT IN FREE TRADE AGREEMENTS IN EAST ASIA......Page 123
5.5 NEW MOVEMENTS TOWARD REGIONAL INTEGRATION......Page 124
5.6.1 Growing Nationalism......Page 128
5.7 POSSIBLE THRUSTS FOR DEEPER REGIONAL INTEGRATION......Page 130
5.7.1 Comprehensive Support for Developing Infrastructures......Page 131
5.7.2 Fostering the Middle Classes and Deepening International Exchanges Among Them......Page 136
5.7.3 Creating a New Mechanism of Regional Economic Development......Page 137
5.7.4 Resolving Energy and Environment Issues......Page 138
5.8 FUTURE DIRECTION OF EAST ASIAN ECONOMIC INTEGRATION......Page 140
5.9 CONCLUSION......Page 143
NOTES......Page 145
6.1 INTRODUCTION......Page 154
6.2.1 Europe A grand vision......Page 155
6.2.2 Asia......Page 161
6.3.1 Europe......Page 163
6.3.2 Asia......Page 171
6.4.1 Europe......Page 174
6.4.2 Asia......Page 175
NOTES......Page 178
REFERENCES......Page 179
PART III Case Studies of East Asian Economic Integration......Page 182
7.1 INTRODUCTION......Page 184
7.2.1 Volume of Intra-regional Trade......Page 185
7.2.2 Changes in the Composition of Traded Goods......Page 186
7.2.3 Changes in the Composition of Trade in Manufactured Goods......Page 187
7.2.4 The Structure of Intra-regional Trade by BEC (Basic Economic Category) Classi......Page 188
7.2.5 The Structure of Exports by Destination and BEC Classi......Page 190
7.3.1 A Brief History of International Trade Theory......Page 191
7.3.2 Determinants of Trade and Policy Implications......Page 193
7.3.3 The Gravity Equation and its Underlying Theories......Page 194
7.3.5 The Approach Adopted in this Chapter......Page 195
7.4.2 Empirical Models Base model......Page 196
7.5.1 Base Model......Page 199
7.5.3 Testing Home Market E......Page 200
7.5.4 Testing the Signi......Page 207
7.6.1 Summarizing the Results......Page 208
7.6.3 Policy Implications......Page 210
NOTES......Page 211
REFERENCES......Page 212
8.1 INTRODUCTION......Page 214
8.2.2 Flying-geese Theory......Page 215
8.2.3 Eclectic Theory......Page 216
8.2.4 New Trade Theory......Page 217
8.2.5 Spatial Economics......Page 218
8.3.1 Overview......Page 220
8.3.2 Characteristics of Korean FDI......Page 221
8.3.3 Chinese Connection......Page 230
8.4.1 Overview......Page 238
8.4.2 LG Electronics......Page 241
8.4.4 Hyundai Automotive......Page 242
8.5 LOCATION CHOICE OF KOREAN SME......Page 243
8.6 CONCLUSION......Page 246
REFERENCES......Page 248
1. Basic Structure......Page 251
2.1 Consumer behavior......Page 252
2.2 Behavior of assemblers......Page 253
3.1 Profit of suppliers......Page 254
NOTES......Page 255
APPENDIX 8A2 SAMPLE REGIONS AND KEY
VARIABLES (2003)
......Page 256
APPENDIX 8A3 REGIONAL DISTRIBUTION OF KOREAN FDI BY SECTOR
(1968–2006.9)
......Page 258
9.1 INTRODUCTION......Page 260
9.2.1 East Asia......Page 262
9.2.2 China......Page 264
9.3.1 East Asia......Page 266
9.3.2 China......Page 269
9.4 IMPACT OF TARIFF REDUCTIONS ON THE LOCATION OF THE AUTOMOBILE INDUSTRY IN EAST ASIA......Page 271
9.4.1 Background: The Japanese Automobile Industry in East Asia......Page 272
9.4.2 Simulations......Page 274
9.5 CONCLUSION......Page 281
NOTES......Page 282
REFERENCES......Page 283
APPENDIX THE DATA AND THE DERIVATION OF
PARAMETERS FOR THE MODEL
......Page 285
10.1 INTRODUCTION......Page 287
10.2 ECONOMIC OPENING AND INDUSTRIAL AGGLOMERATION IN CHINA......Page 288
10.2.2 Increasing Cross-border Capital Flows......Page 289
10.2.3 Further Opening up after WTO Accession......Page 290
10.2.4 Regional Industrial Agglomeration during Reform......Page 291
10.3.1 The Mechanism of Industrial Agglomeration: Case Study of China’s Yangtse Delta......Page 299
10.3.2 Economic Policies, Economic Geography and the New Economic Geography: The Role of Economic Opening in Reshaping China’s I......Page 309
10.4.1 Econometric Model and Data Explanation......Page 314
10.4.2 Empirical Results......Page 316
10.5 CONCLUSIONS AND POLICY IMPLICATIONS......Page 319
NOTES......Page 320
REFERENCES......Page 321
DATA APPENDIX......Page 324
11.1 INTRODUCTION......Page 327
11.2 MANUFACTURING INDUSTRIES IN ASEAN COUNTRIES......Page 330
11.3 FOREIGN DEPENDENCE AND TRADE FREENESS......Page 332
11.4 HOME MARKET EFFECT......Page 341
11.5 ACCESSIBILITY AND HOME MARKET EFFECT......Page 344
11.6 LINKAGES BETWEEN JOHOR AND SINGAPORE......Page 347
11.7 CONCLUSION......Page 350
NOTES......Page 351
REFERENCES......Page 352
C......Page 354
E......Page 355
I......Page 356
M......Page 357
S......Page 358
W......Page 359
Z......Page 360