A Comprehensive Introduction to Regional Issues
Edited by Masahisa Fujita, Ikuo Kuroiwa and Satoru Kumagai
Ikuo Kuroiwa and Satoru Kumagai 1.1 INTRODUCTION This chapter overviews the progress of de facto economic integration, or in other words, the evolving structure of production and trade in East Asia.1 Firstly, a brief history of industrial development in East Asia is provided with a focus on industrial policy. Secondly, key statistics are furnished to give readers basic information, through an overview of the economies in the region. Thirdly, the trade structure of East Asia is examined with a focus on production networks in the electronics and automobile industries. Fourthly, drivers of economic integration are examined with reference to trade policy and tariff rates as well as freight costs. It is of great interest to explore how production networks have evolved in East Asia and why East Asia was able to become the manufacturing factory of the world; however, in the face of the current global economic crisis, a need has arisen to transform the East Asian economy, and this is discussed in the conclusion of the chapter. 1.2 INDUSTRIAL DEVELOPMENT IN EAST ASIA Only half a century ago, East Asia was generally seen as a region of ‘poverty’ and ‘stagnation’. Now, East Asia has transformed itself into the ‘growth center’ of the world, recording a high economic growth rate well above the world average for decades. Some people regard this as a ‘miracle’, and it was a favorite theme of argument for economists in the 1990s and thereafter (World Bank 1993, Krugman 1994, Stiglitz and Yusuf 2001). Economic development...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.