Research On The Supply Of Regional Public Goods In East-asia Economic Cooperation

The East-Asia Economic Cooperation has always been in between the ideal and the reality,which is a process full of contradictions.This paper is only a technical interpretation of the process. Regional economic cooperation originally is an important research subject in International Economics.But it failed to take the importance of political factors into account,so it is difficult for it to describe the full picture of regional economic cooperation. In fact, countries should not only weigh the economic gains and losses but also weigh the political pros and cons.Also,they should not only follow the logic of the market but also follow the logic of power in the development of regional economic cooperation strategy.Obviously,regional economic cooperation is not only an economic problem, but also a political issue.Also,it is not only a question of political economics but also a question of international political economics.The theory of regional public goods is rightly the extension and application of the International Political Economics in regional level.According to this idea, this paper improved the analysis framework of the theory of regional public goods from the perspective of the supply using the research method of the combination of logic analysis and historical analysis.Based on the analytical framework,this paper investigated the East Asian economic cooperation after the Asian financial crisis in 1997 and the global financial crisis in 2008 respectively and made prospective analysis of its development trend in the future.The fundamental purpose of this paper aims to solve the problems in three aspects: firstly, considering about the conditions of effective supply of regional public goods under the constraints of the game inside and outside the region;secondly,considering about the different results and causes of the supply of East Asian regional public goods after the two financial crisis;thirdly,considering about the prospects and influencing factors of the supply of regional public goods under the background of the transformation of power pattern.The thesis is divided into 7 chapters.The first chapter "Introduction", this chapter gives a brief introduction to the subject conception, the existing research and the necessity of further research,research method, structure arrangement, the innovation and the insufficiency of the paper.The second chapter "the relevant concepts and theoretical explanation of regional economic cooperation".This chapter defines the basic concepts of the full text.First of all, the "East Asian economic cooperation" is not referring to the cooperation of any time and in any form in a general sense,but is a proper noun which refers in particular to the practice in economic diplomacy officially launched in the late 1990 s and taking regional economic integration as the ideal goal.Secondly, this paper gives a systematic combing of the exsisting theoretical explanation on regional economic cooperation and found that the explanatory power of international political economics was obviously stronger than international economics and international politics.The theory of regional public goods is rightly the extension and application of International Political Economics in regional level.Lastly, the paper makes a brief introduction to the origin, vein and limitation of the theory of regional public goods.The third chapter "the analysis framework of the theory of public goods in regional economic cooperation”.This chapter constructs the theory mainline of the full text. clue.Firstly, this paper expounds the relationship between regional economic cooperation and regional public products.Through the analysis of logical connotation of "regional public goods" it defines the supply mode of the product, extends the judgment standard of the publicity of products and makes clear the form and content of products.Then the concept is operated which is suitable for the practice in East Asian economic cooperation. Secondly, the paper uses three elements of "expected return", "cost of supply" and "externality" to depict the decision function of the supply of regional public goods which individual countries participate in and gives them new theory implications including:the expected return is the fundamental driving force for countries to involve in the supply, supply cost is the internal constraints of countries to involve in the supply and the externality is the external constraints of countries to involve in the supply.On this basis, this paper uses theory tools including game theory, Greco model and Snyder model demonstrated the conditions for these countries to achieve the cooperation supply from national heterogeneity and correlation of interests which means:based on the clarifying of sensitivity of different countries’ revenue and sensitivity of the cost,it reshapes the cost-income structure of individual countries through certain supply mechanism;It admits the correlation between regional public goods supply and interests of foreign powers and properly deal with the intervention.The forth chapter "The East Asian regional public goods supply after the Asian financial crisis: progress and effectiveness" is a theoretical interpretation to East Asian economic cooperation for more than ten years’ history after 1997. Firstly, this paper analyzes the cause of East Asian public goods supply and points out that this is the inevitable result of regional public goods demand constantly "fermentation".Secondly,it examines the content and characteristics of East Asian regional public goods supply in this stage,namely: regional public goods of trade is the key of suppl and regional public product of investment is the "by-product".Both of them show the characteristics of obvious "inferior quality and low price". Then, the paper uses gravity model to empirically analyze the effect of the supply of public goods in East Asia in this stage.The results show that although there is a serious "noodle bowl effect",the supply of public goods in East Asia has indeed greatly promoted the development of regional trade, which is relatively successful.Finally, this paper analyzes the three reasons for the relative success of supply: the suppliers take the absolute return as the main focus;the overall cost of supply is relatively low and the selective incentives of great powers reduce the cost of individual countries;the externality is small and the "open regionalism" and limited intervention of the United States have better realized the internalization of externalities.The fifth chapter "the East Asian regional public goods supply after the global financial crisis: predicament and breakthrough" is a theoretical interpretation to the dilemma of East Asian economic cooperation after 2008.First of all, the papaer examines the deep economic integration trend of East Asian economic cooperation after global financial crisis and the trend’s demand for high quality of regional public goods.Then it analyses the general demand and key demand of East Asia for regional public goods of high quality.However, the real question is that the process of “high quality” of all kinds of regional public goods in East Asia is caught in a dilemma.There are three aspects which lead to the causes of this dilemma: The national competition of the relative gain weakens the fundamental driving force of supply;the high supply cost strengthens the internal constraints of supply;The comprehensive intervention of the United States sthengthens the external constraints of supply.Finally, the paper examines the strategies which the East Asian countries take to break the dilemma of "high quality" : RCEP has become a new attempt of ASEAN’s leading role in regional public goods supply; "Marine silk road in the 21 st century" is becoming a new mode of China to lead the regional public goods supply.Both of them have some help in breaking the dilemma.But in contrast,the impact of "Marine silk road in the 21 st century" is more positive.The sixth chapter "the prospects of East Asian regional public goods supply: certainty and uncertainty" is the theoretical prediction of the future trend of East Asian economic cooperation. Firstly, the thesis clarifies the certainty of the prospects of East Asian regional public goods supply, namely: the scope of supply subject has inevitably extended beyond East Asia and the possibility of the realization of "pure East Asia" supply is getting smaller and smaller; various regional public goods will form a situation in which multi-levels coexist and cannot replace each other; supply mechanism will be more diversified and develop together in a long term.But what we can not be sure is that: whether ASEAN can continue to serve as the center of regional public goods supply;where the competition of supply between China and Japan will go and what the prospects of Asia Pacific supply development which is led by the U.S will be.Finally, to achieve the sustainable supply of regional public goods, there must be a reintegration of already differentiated expected benefits so as to promote the big powers to take on more supply cost.Thus the externalities are internalized during the process of competition and mutual fusion.The seventh chapter “the strategic choice of China’s participation in regional public goods supply” is the theoretical thinking of China’s regional economic cooperation strategy in the future. Under the dual status of the rising powers and the developing countries,whether China can effectively improve the regional public goods supply level depending on three aspects, namely: whether there is a clear strategic positioning in order to address the contradictions between supply intention and supply ability;whether China can choose the actual supply strategy to coordinate the relationship between the target and the means and how to take effective policy measures to resolve the specific risk in reality. But in any case, the “Greater Neighborhood” region has become a strategic basis for our country to become a powerful country. China should be more actively in taking the initiative to bear the cost of regional public goods supply so as to provide new impetus and space for our multi-level and all-round economic diplomacy.The last part is the conclusion part which summarizes the main points of this paper. Key Words:...