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Economic Integration in East Asia: An International Input‐Output Analysis

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  • Yuichi Hasebe
  • Nagendra Shrestha

Abstract

To establish economic and monetary union (EMU) in East Asia, deepening regional integration through international trade is important. The economic interdependence (one of the important criteria for regional integration) study, using macro data does not reflect the indirect effects generated by interactions between different production sectors and different countries. We use the international input‐output (IIO) framework to study the economic interdependence at both macro and production sector levels. We refine the existing methods to reflect exogenous country effect and size effect of the economy. Our study suggests that establishing EMU in East Asia appears to be somewhat premature. However, we can be more optimistic for regional integration at the production sector level in East Asia when including Japan, which will create a basis for EMU in the region.

Suggested Citation

  • Yuichi Hasebe & Nagendra Shrestha, 2006. "Economic Integration in East Asia: An International Input‐Output Analysis," The World Economy, Wiley Blackwell, vol. 29(12), pages 1709-1735, December.
    • Handle: RePEc:bla:worlde:v:29:y:2006:i:12:p:1709-1735
    DOI: 10.1111/j.1467-9701.2006.00865.x
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    Cited by:

    1. Nagendra Shrestha, 2007. "Onsite Research in the U.S. and Canada: Govemental Data Availability in Notrh America," Hi-Stat Discussion Paper Series d06-208, Institute of Economic Research, Hitotsubashi University.
    2. Tomoko Mori & Hitoshi Sasaki, 2007. "Interdependence of Production and Income in Asia-Pacific Economies: An International Input-Output Approach," Bank of Japan Working Paper Series 07-E-26, Bank of Japan.

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