Economic Integration, Democratization and National Security in East Asia
Show Less

Economic Integration, Democratization and National Security in East Asia

Shifting Paradigms in US, China and Taiwan Relations

Edited by Peter C.Y. Chow

The US policy of supporting a democratic Taiwan while simultaneously engaging China is a delicate and complex balance, with outcomes critical to economic, security and strategic interests in Asia. At the same time, rising Taiwanese identity amid the emerging power of China continues to change the paradigm. The contributors to this volume explore the political and economic dimensions of this complicated and pressing issue.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 8: Taiwan and East Asian Integration

Tain-Jy Chen and Ying-Hua Ku


Tain-Jy Chen and Ying-Hua Ku INTRODUCTION East Asian integration has picked up much momentum in recent years. In addition to many bilateral free trade agreements (FTAs), there is a series of plurilateral regional trade arrangements (RTAs) such as ASEANϩ1 (AP1 hereafter), ASEANϩ3 (AP3 hereafter), China–Japan–Korea FTA, and so on. This does not mean East Asia did not undergo earlier economic integration. In fact, East Asia has undergone very extensive economic integration since the late 1960s, driven by market forces. Unlike market-driven integration in the past, recent integration in East Asia has been driven by government policies and many FTAs and RTAs are politically manipulated. The watershed between market-driven and policy-driven integration is the Asian Financial Crisis that erupted in 1997. Taiwan was conspicuously missing in the recent policy-driven East Asian integration, although it has played an important role in the former phase of market-driven integration. The purpose of this chapter is to discuss why Taiwan was excluded from the recent integration process and to assess the possible consequences of its exclusion. In particular, we will estimate the effects of AP1 and AP3 on Taiwan, along with other major trading partners of the intended members. Discussions will be made on Taiwan’s role as a trader and as a supplier to East Asia’s production network. In the next section, we review the recent movement in East Asian integration. We then estimate the effects of AP1 and AP3 on the member as well as non-member countries. In...

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.

Further information

or login to access all content.