IDEAS home Printed from https://ideas.repec.org/a/bpj/glecon/v12y2012i2n4.html
   My bibliography  Save this article

Trends of Trade Interdependence and Prolifiration of FTAs in Asia: 1980-2010

Author

Listed:
  • Hamanaka Shintaro

    (Economist, Office of Regional Economic Integration, Asian Development Bank)

Abstract

In assessing the recent development of economic regionalism in Asia and elsewhere, it is important to carefully examine if the level of integration of intraregional trade is increasing or decreasing. However, it is not easy to answer this ostensibly simple question. There are two ways to assess the level of trade integration: de facto integration and de jure integration. With respect to de facto integration (actual level of interdependence in terms of trade flows), the answer depends on which Asian countries are being considered and which indicator is being used to measure trade interdependence. This paper compares the trade interdependence of different sets of Asian countries using various indices. With respect to de jure integration (the signing of free trade agreements [FTAs]), the number of signed FTAs in Asia is growing but the relation between trade interdependence and the signing of FTAs has not been sufficiently studied. The second half of this paper addresses whether de jure trade integration is ultimately brought about by high-level or low-level de facto trade integration. The analysis in this paper finds that a set of countries that have experienced de facto integration tend to sign a comprehensive agreement to solve issues associated with high levels of trade interdependence, while a set of countries whose level of economic interdependence is low or declining may require a goods-centered agreement to boost trade among members.

Suggested Citation

  • Hamanaka Shintaro, 2012. "Trends of Trade Interdependence and Prolifiration of FTAs in Asia: 1980-2010," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-23, June.
    • Handle: RePEc:bpj:glecon:v:12:y:2012:i:2:n:4
    DOI: 10.1515/1524-5861.1840
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/1524-5861.1840
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/1524-5861.1840?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Peter A. Petri, 2006. "Is East Asia becoming more interdependent?," Proceedings, Federal Reserve Bank of San Francisco, issue Jun.
    2. Jeffrey Frankel & Miles Kahler, 1993. "Regionalism and Rivalry: Japan and the United States in Pacific Asia," NBER Books, National Bureau of Economic Research, Inc, number fran93-1.
    3. Prema-chandra Athukorala & Archanun Kohpaiboon, 2009. "East Asian Exports in the Global Economic Crisis: The Decoupling Fallacy and Post-crisis Policy Challenges," Departmental Working Papers 2009-13, The Australian National University, Arndt-Corden Department of Economics.
    4. Rahman Khondaker Mizanur & Molla Rafiqul Islam & Murad Md. W., 2008. "The China Factor Blunts the Cutting-Edge of the Japan-Malaysia Free Trade Agreement," Global Economy Journal, De Gruyter, vol. 8(4), pages 1-18, December.
    5. Peter A. Petri, 1993. "The East Asian Trading Bloc: An Analytical History," NBER Chapters, in: Regionalism and Rivalry: Japan and the United States in Pacific Asia, pages 21-52, National Bureau of Economic Research, Inc.
    6. Liu Yunhua & Luo Hang, 2004. "Impact of Globalization on International Trade between ASEAN-5 and China: Opportunities and Challenges," Global Economy Journal, De Gruyter, vol. 4(1), pages 1-20, October.
    7. repec:phd:pjdevt:pjd_2001_vol__xxviii_no__2-a is not listed on IDEAS
    8. Athukorala, Prema-chandra & Kohpaiboon, Archanun, 2009. "Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges," ADBI Working Papers 177, Asian Development Bank Institute.
    9. Walter F. Hatch, 2004. "Japan's Agenda for Asian Regionalism: Industrial Harmonization, Not Free Trade," Japanese Economy, Taylor & Francis Journals, vol. 32(2), pages 86-97.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kaliappa Kalirajan, 2022. "Will free trade agreement between India and China reduce India’s trade deficit?," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 24(1), pages 194-208, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Catherine Figuière & Laëtitia Guilhot & Cyriac Guillaumin, 2013. "La question du régime de change en Asie de l'Est : Vers un bloc monétaire régional ?," Revue d'économie politique, Dalloz, vol. 123(2), pages 265-298.
    2. Fukunari Kimura & Ayako Obashi, 2016. "Production Networks in East Asia: What We Know So Far," ADB Institute Series on Development Economics, in: Ganeshan Wignaraja (ed.), Production Networks and Enterprises in East Asia, edition 1, chapter 0, pages 33-64, Springer.
    3. Morris Goldstein & Daniel Xie, 2009. "The impact of the financial crisis on emerging Asia," Proceedings, Federal Reserve Bank of San Francisco, issue Oct, pages 27-80.
    4. de Truchis, Gilles & Keddad, Benjamin, 2013. "Southeast Asian monetary integration: New evidences from fractional cointegration of real exchange rates," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 26(C), pages 394-412.
    5. Suder, Gabriele & Liesch, Peter W. & Inomata, Satoshi & Mihailova, Irina & Meng, Bo, 2015. "The evolving geography of production hubs and regional value chains across East Asia: Trade in value-added," Journal of World Business, Elsevier, vol. 50(3), pages 404-416.
    6. Deardorff, Alan V., 2005. "Trade and location: A moving example motivated by Japan," Journal of the Japanese and International Economies, Elsevier, vol. 19(2), pages 169-193, June.
    7. Park, Donghyun & Shin, Kwanho, 2010. "Can Trade with the People’s Republic of China Be an Engine of Growth for Developing Asia ," Asian Development Review, Asian Development Bank, vol. 27(1), pages 160-181.
    8. Yýlmaz Akyuz, 2010. "Export Dependence and Sustainability of Growth in China and the East Asian Production Network," Working Papers 2010/7, Turkish Economic Association.
    9. Siow Yue Chia, 2010. "Regional Trade Policy Cooperation and Architecture in East Asia," Trade Working Papers 22029, East Asian Bureau of Economic Research.
    10. Eleonora Cutrini & Giorgio Galeazzi, 2012. "Can emerging economies decouple from the US business cycle?," Working Papers 41-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised Jul 2014.
    11. Pomfret, Richard, 2014. "European crises and the Asian economies," Journal of Asian Economics, Elsevier, vol. 31, pages 71-81.
    12. Lee, Hiro & Woodall, Brian, 1998. "Political feasibility and empirical assessments of a Pacific free trade area," MPRA Paper 82340, University Library of Munich, Germany.
    13. Ayuso-Díaz, Alejandro, 2022. "Natural trading partners versus empires in East and Southeast Asia regional integration (1840-1938)," Journal of the Japanese and International Economies, Elsevier, vol. 63(C).
    14. Abidin ÖNCEL & Raisal Fahrozi LUBİS, 2017. "What impact has free trade area on economies of ASEAN-5 countries?," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(3(612), A), pages 51-62, Autumn.
    15. Mia Mikic & Mochamad Pasha (ed.), 2011. "Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia," STUDIES IN TRADE AND INVESTMENT, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number tipub2597, April.
    16. Ralph Paprzycki & Keiko Ito, 2010. "Investment, Production and Trade Networks as Drivers of East Asian Integration," Global COE Hi-Stat Discussion Paper Series gd09-117, Institute of Economic Research, Hitotsubashi University.
    17. Prema-chandra Athukorala, 2013. "Global production sharing and trade patterns in East Asia," Departmental Working Papers 2013-10, The Australian National University, Arndt-Corden Department of Economics.
    18. Park, Yung Chul, 2011. "The Global Financial Crisis: Decoupling of East Asia—Myth or Reality?," ADBI Working Papers 289, Asian Development Bank Institute.
    19. Dunning John H. & Salvatore Dominick & Gray H. Peter & Kreinin Mordechai E. & Plummer Michael G. & Kindleberger Charles P., 2000. "Global Economy Quarterly, Issue 1," Global Economy Journal, De Gruyter, vol. 1(1), pages 125-125, December.
    20. Peter Draper & Andreas Freytag & Sören Scholvin & Luong Thanh Tran, 2016. "Is a 'Factory Southern Africa' Feasible? Harnessing Flying Geese to the South African Gateway," CESifo Working Paper Series 5867, CESifo.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:glecon:v:12:y:2012:i:2:n:4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.