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De Factoandde Jureregional Economic Integration In East Asia: How Do They Interact

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  • FRANÇOISE NICOLAS

    (French Institute of International Relations, 27 rue de la Procession, 75740 Paris Cedex 15, France)

Abstract

A salient feature of the East Asian region is the persistent discrepancy between the progress inde factoandde jureeconomic integration. East Asia has long been said to be the champion of loose regional economic integration, with deepening intra-regional trade and investment linkages in the absence of any formal cooperative scheme. However, an oft-heard claim is that East Asia has been shifting recently towards an institution-based form of regional economic cooperation, primarily as a result of the 1997–98 financial crisis. Next to post-crisis financial cooperative schemes under the ASEAN+3, the surge of Regional Trade Agreements (RTAs) involving East Asian countries is thought by some to further substantiate this claim. The objective of the paper is twofold; first, to assess the validity of the aforementioned claim; and second, to examine the links betweende factoandde jureeconomic integration in East Asia compared to other regions of the world. In the process, the sequencing between trade and monetary cooperation is also addressed. The paper starts by providing a candid assessment of the current state of play of economic cooperation in East Asia (de jureintegration), both from the trade and the financial/monetary perspective, and highlights the limitations of the formal regional integration movement in East Asia to date. As a next step, it explores the changing nature of intra-regional trade and investment linkages, contrasts it to the situation in other parts of the world such as Europe and examines to what extent this new form of interdependence may be instrumental in making formal regional economic schemes more attractive. A major conclusion is thatde factotrade integration may not automatically lead to deeper regional trade cooperationde jureand that its impact is likely to be stronger on monetary cooperation projects.

Suggested Citation

  • Françoise Nicolas, 2010. "De Factoandde Jureregional Economic Integration In East Asia: How Do They Interact," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 55(01), pages 7-25.
    • Handle: RePEc:wsi:serxxx:v:55:y:2010:i:01:n:s0217590810003584
    DOI: 10.1142/S0217590810003584
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    2. Inoue, Sotaro & Ito, Noriko & Higuchi, Tomoo, 2018. "Trade Structure Change in the Asia-Pacific Region: Network Analysis of Trade Flow and Trade Agreements," Japanese Journal of Agricultural Economics (formerly Japanese Journal of Rural Economics), Agricultural Economics Society of Japan (AESJ), vol. 20.
    3. Pariwat Kanithasen & Vacharakoon Jivakanont & Charnon Boonnuch, 2011. "AEC 2015: Ambitions, Expectations and Challenges ASEAN's Path towards Greater Economic and Financial Integration," Working Papers 2011-03, Monetary Policy Group, Bank of Thailand.

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    More about this item

    Keywords

    Regional economic integration; FTAs; RTAs; fragmentation; financial cooperation; international monetary arrangements; foreign exchange policy; East Asia; F13; F15; F31; F33; F36; F59; O19; O24;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F15 - International Economics - - Trade - - - Economic Integration
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F59 - International Economics - - International Relations, National Security, and International Political Economy - - - Other
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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