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Asian trade: long-term patterns and key policy issues

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  • Prema-chandra Athukorala
  • Hal Hill

Abstract

Fragmentation-based specialisation has become an integral part of the economic landscape of East Asia. Dependence on this new form of international specialisation is proportionately larger in East Asia, in particular in the Association of Southeast Asian Nations, than in North America and Europe. In this regard, an important recent development has been the rapid integration of China into regional production networks. This development is a counterpoint to the popular belief that China's global integration would crowd out other countries' opportunities for international specialisation. The rise of product fragmentation has strengthened the case for a global, rather than a regional, approach to trade and investment policymaking. Given the global orientation of the region's economies, we question whether there would be a significant benefit from current efforts to promote regional cooperation, unless the principle of 'open regionalism' is recognised. With both the Doha Round and APEC floundering, this is one of the major multilateral policy challenges of our time. Copyright © 2010 The Authors. Journal compilation © 2010 Crawford School of Economics and Government, The Australian National University and Blackwell Publishing Asia Pty Ltd..

Suggested Citation

  • Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 24(2), pages 52-82, November.
    • Handle: RePEc:bla:apacel:v:24:y:2010:i:2:p:52-82
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    References listed on IDEAS

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    Cited by:

    1. Lim, King Yoong, 2019. "Industrial Transformation With Heterogeneous Labor And Foreign Experts," Macroeconomic Dynamics, Cambridge University Press, vol. 23(8), pages 3225-3266, December.
    2. Prema‐chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding‐Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
    3. Truong Quang Hoan & Dong Van Chung & Nguyen Huy Hoang, 2019. "Taiwan–ASEAN Trade Relations: Trade Structure and Trade in Value Added," China Report, , vol. 55(2), pages 102-124, May.
    4. Prema-chandra Athukorala & Archanun Kohpaiboon, 2013. "Global Production Sharing, Trade Patterns and Industrialization in Southeast Asia," Departmental Working Papers 2013-18, The Australian National University, Arndt-Corden Department of Economics.
    5. Anne Booth, 2011. "China’s Economic Relations with Indonesia: Threats and Opportunities," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 30(2), pages 141-160.
    6. Prema‐chandra Athukorala, 2006. "Trade Policy Reforms and the Structure of Protection in Vietnam," The World Economy, Wiley Blackwell, vol. 29(2), pages 161-187, February.

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