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Managing The Noodle Bowl: The Fragility Of East Asian Regionalism

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  • RICHARD E. BALDWIN

    (Graduate Institute of International Studies, 11a, Av de la Paix, 1202 Geneva, Switzerland)

Abstract

The paper argues that East Asian regionalism is fragile, since (i) each nation's industrial competitiveness depends on the smooth functioning of "Factory Asia" — in particular, on intra-regional trade; (ii) the unilateral tariff-cutting that created "Factory Asia" is not subject to WTO discipline (bindings); (iii) there is no "top-level management" to substitute for WTO discipline, i.e., to ensure that bilateral trade tensions — tensions that are inevitable in East Asia — do not spillover into region-wide problems due to lack of cooperation and communication. This paper argues that the window of opportunity for East Asian "vision" was missed; what East Asia needs now is "management", not vision. East Asia should launch a "New East Asian Regional Management Effort", with a reinforced ASEAN + 3 being the most likely candidate for the job. The first priority should be to bind the region's unilateral tariff cuts in the WTO.

Suggested Citation

  • Richard E. Baldwin, 2008. "Managing The Noodle Bowl: The Fragility Of East Asian Regionalism," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 53(03), pages 449-478.
    • Handle: RePEc:wsi:serxxx:v:53:y:2008:i:03:n:s0217590808003063
    DOI: 10.1142/S0217590808003063
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    References listed on IDEAS

    as
    1. Richard E. Baldwin, 1997. "The Causes of Regionalism," The World Economy, Wiley Blackwell, vol. 20(7), pages 865-888, November.
    2. Kimura, Fukunari & Ando, Mitsuyo, 2005. "Two-dimensional fragmentation in East Asia: Conceptual framework and empirics," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 317-348.
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    13. Takatoshi Ito & Andrew K. Rose, 2005. "International Trade in East Asia," NBER Books, National Bureau of Economic Research, Inc, number ito_05-1.
    14. Ito, Takatoshi & Rose, Andrew K. (ed.), 2005. "International Trade in East Asia," National Bureau of Economic Research Books, University of Chicago Press, number 9780226378961, September.
    15. O. G. Dayaratna Banda & John Whalley, 2005. "Beyond Goods and Services: Competition Policy, Investment, Mutual Recognition, Movement of Persons, and Broader Cooperation Provisions of Recent FTAs involving ASEAN Countries," NBER Working Papers 11232, National Bureau of Economic Research, Inc.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Regionalism; noodle bowl; East Asia;
    All these keywords.

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration

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