Font Size: a A A

Research On The Path Of Trade Integration In East Asia

Posted on:2009-10-20Degree:DoctorType:Dissertation
Country:ChinaCandidate:C X XuFull Text:PDF
GTID:1119360272972506Subject:International Trade
Abstract/Summary:PDF Full Text Request
Regionalism represented by Regional Trade Blocs (RTBs) and Multilateralism represented by World Trade Organization (WTO) are always highlights studying and discussing in fields of international trade. As one of the largest three regional economies (the European Union, NAFTA and East Asia)in the world, regionalism in East Asia distinguishes different characteristics from the other two. The characteristics of trade integration in East Asia made the orthodox theory of freedom for trade and regional integration theory model based on homogeneous members represented by European Union meet puzzle when they try to explain the trade practices in East Asia. On the one hand, the intra-regional trade between nations grows rapidly in recent years, while the elimination of tariff barriers or reduce of non-tariff barriers between economics are very limited, on the other hand, although the process of regional integration is backward in East Asia, while it doesn't impede the rapid extension tendency of East Asia's intra-regional trade.Studies also indicate that East Asia is the right place where China benefits from trade. From 2004 till 2007, for example, trade value between China and the other East Asia economics reached 554.836 billion, 654.687 billion, 776.517 billion and 920.156 billion U.S dollars respectively, accounted for 48.04, 46.03, 44.10,42.34 per cent of China's annul total trade. At the same time, the trade value to Japan, Korea as well as ASEAN gained 91.84, 90.58, 89.17 and 87.22 per cent of that of the Asian market share.Moreover, studies also discover that for continuous several years China gains trade surplus to the United States and the European Union members, while creates trade deficit to most of the East Asian countries and regions. This kind of trade pattern (trade unbalance) implies the different industry structure and position of specialization which resulted in it between China and other economics of East Asia, while specialization is one of supported elements of integration of trade in East Asia, the economic logic is trade pattern ? product structure ? industrial structure ? specialization ? integration of trade.The practice of European regional integration offers theoretical experience for other regional integration cases. However, different economics have different motivations, approaches, and purposes when they decided to organize the regional integration. So it's necessary to analyze the features, conditions, system as well as final goals.The enormous difference of members structure in East Asia means that it will has its unique path of trade integration. So a deeply study on integration of trade in East Asia under the model of'heterogeneous'members structure has not only an important theoretical implication, but also an important practical significance.The whole dissertation consists of three parts, introduction, seven chapters(chapter one to chapter seven)of the body and a conclusion.Introduction, as the first part of the dissertation, is mainly to introduce the background and significance of studying on this topic, the approach to the study , the definition of East Asia as well as the new ideas to bring forth.Chapter one is mainly to comb and survey the related references from both domestic and abroad points of view. On the basis of review, the author points out that the present theories represented by EU model cannot explain reasonably the growth of East Asian trade, at the same time, a new model and some new ideas are given from theoretical and approach levels to give the answer.Based on two clues, trade integration and vertical specialization, Chapter two made a systematic study on relevant theories, as the study theoretical background, of both regional economic integration and the developing path of the relationships between specialization (also called international division of labor) and trade. Furthermore, as regionalization and regionalism are two forms of regional integration, the sustainable performance from regionalization to regionalism creates interdependence between economics in East Asia. In the short run, the functional cooperation and institutional harmonization are co-exist within each other, but in the long run, the functional cooperation will abdicate to institutional coordination, i.e., from regionalization to regionalism, so some relevant theories on regionalization and regionalism are given in this chapter.Chapter three, as one of the most important parts of the dissertation, is a new theoretical framework advocated by the author for regional integration of heterogeneous structural members. First, the author reviews the limitation of the present theories, indicates that the orthodox theory for freedom of trade cannot explain the reality of extension of trade practice in East Asia, meanwhile, the traditional theory based on European Union model cannot explain reasonably the trade integration practice in East Asia, either. A naturally more positive and reasonable regional integration theory must be advanced urgently. Next, from the developing countries'point of view, the author analyzes the reasons and approaches that the developing economics carry out regional integration.Then, the author analyzes the theories and factors concerning the trade integration, such as economic globalization, investment, transaction cost, institutions, etc. All these theories and factors are the preconditions of trade integration.Finally, on the basis of the above presentation, the author advocates a new theoretical framework suitable for heterogeneous structural members to carry out regional integration under the term of trade integration. It is different with EU, as a representative of homogeneous member structure, which integration path includes preferential trade arrangement (PTA), free trade area (FTA), customs union (CU), the common market (CM), the economic union (EU),and the complete economic integration ( or Political and Economic Union,PEU), the regional economic integration is firstly performs as trade integration for the heterogeneous members. The integration path of East Asia is consist of several different developing stages as follows, trade integration which including sub-regional preferential trade arrangement, shallow trade integration based on specialization, free trade area as well as customs union, common market, economic union represented by monetary arrangement and community arrangement. Also, the author indicates that the ultimate purpose for heterogeneous structural members to carry out integration is a community arrangement as the final goal, which is not the same as complete political and economic integration as that of the homogeneous members.Chapter four is the empirical test for the model of trade integration form advocated in chapter three. Evidences from studies of European Union (EU), North American Free Trade Area (NAFTA), Asia-Pacific Economic Cooperation (APEC) and Association of Southeast Asian Nations (ASEAN) find that the form of trade integration can explain well the integration practice of NAFTA, but cannot explain well that of the EU's, especially for some stages such as the shallow integration stage based on specialization, the model doesn't appear notable. The main reason is that EU is a homogeneous integration organization which is composed of pure developed economics, a more finer intra-specialization is formed among countries, and the competition is more distinct than complement, the modes of trade is mainly horizontal intra-industry based on scale economy and intra-industry competition, it was actually leaped over from preferential trade arrangement (PTA) to customs union. While NAFTA is a different integration organization, it is mixed with developed economics and developing economics, called heterogeneous member structure. Between the economics, the competition is less than the complement, and the means of trade is mainly vertical inter-industry trade upon natural resource endowment and absolute advantage based on specialization. So the form of trade integration can explain the trade practice of NAFTA. In comparison, APEC and ASEAN are also brought out to test the framework of trade integration.Further studies indicate that framework of trade integration can partly explain the integration process of APEC, but still some stages are not distinct. As the author analyzed, the main reason is that APEC is an organization with unclear regional characteristics, which are as follows: (1) APEC is an organization with opening while not closed characteristics. (2) the regional characteristic is not clear, as it is covering twenty-one members across the Asia and the Pacific. (3) Most of the members in APEC are also members for one or more of other regional integration arrangements (RIAs), which is called"Spaghetti-bowl"effect, for which it is forming a challenge to the APEC process. At the same time, studies also discover that some stages are not clear in practice of ASEAN integration, because ASEAN is an integration organization of homogeneous structure with developing members. Still, we can find that the road of ASEAN integration accompanied with the author's framework of regional integration: trade integration with some stages not distinct, common market in 2020, ASEAN community which is advanced in October, 2003, and to be the goal for regional integration in November, 2004.Until now we can say that the form of trade integration and framework of regional integration based on it can explain the regional integration practice for heterogeneous structural members. The studies also discover that even the same heterogeneous members such as NAFTA and East Asia, the characters are still different in different stages of trade integration because of their regional scale including the numbers of member economics, the size of market scale, the degree of heterogeneity including the differences of stage and level of economic development, of social institution, the cultural background, the race and nationality, preferences, the religious belief, etc.Chapter five discusses the feasibility and difficulties for East Asia to carry out trade integration. With regard to the aspect of feasibility, the dissertation discusses the historical and realistic basis of trade in East Asia as well as the competitive and complementary relations between economics, emphasizes the positive study of trade integration in East Asia based on view of several aspects. The difficulties mainly reflect in three aspects: first, both"Spaghetti-bowl"effect and"hub and spoke"effect are to be the paradoxes of general integration. Next, the challenge of heterogeneity of member economics, the reality that heterogeneous member structure means more institutional harmonization is needed to reach the final goal of cooperation. Finally, factors from outside, especially challenges from the United States, which have essential strategic profits in East Asia, the negligence of the exist and profit of which would lead to predicament of trade integration in East Asia.On the basis of organizational framework formed in chapter three, Chapter six discusses the approaches for trade integration in East Asia. As the important part of the dissertation, it is the specific practice for the regional integration theoretical framework under the term of trade integration.First, two important sustaining factors are discussed for integration of trade, they are specialization and institutional harmonization. The author points out that international division of labor (specialization) is the basis and premise of trade integration, also it is the approach and means of trade integration. It can be lead to decrease of transaction cost and increase of transaction efficiency. While institutional harmonization is the institutional guarantee to fulfill the trade integration. The sustainable performance of both specialization and institutional coordination is also the sustainable performance from regionalization to regionalism of trade integration.Next, the arrangements of trade integration in East Asia are from regionalization to regionalism. From sub-regional preferential trade arrangement, shallow trade integration, free trade area till the customs union, the trade integration in East Asia goes through two patterns: from regionalization to regionalism.Then, the integration of trade indicates that the different tendencies of value of different economics.Finally, the political economy of trade integration tells us that the essence of trade integration in East Asia is a re-adjustable process of world economy and political patterns dominated by the United States, it is the process of exploration for their economic development, also it is the process of gaining general equilibrium after gaming each other between different profitable blocs.Moreover, China is one of the largest trade economics in East Asia, from which it is get the trade profits. So China should play a further important role in the process of trade integration in East Asia. Also, this part explains the reasons why China has different trade balance to different economics in East Asia, some counter measurements are given to balance the payment of trade.In chapter seven, gravitation model is used to test the relevance of the existed sub-regional preferential trade arrangements, and the computable general equilibrium (CGE) model is used to imitate the welfare of regional arrangements in East Asia, including East Asia free trade area (EAFTA), which will be established in the near future. The studies indicate that in East Asia, although it is lack of formal regional trade agreements (RTAs), a strengthening tendency is come into being with the trade integration between members within the regional blocs.The last (third) part of the dissertation is the conclusion.
Keywords/Search Tags:Integration of Trade, Regionalization, Regionalism, 'Heterogeneous'Members Structure
PDF Full Text Request
Related items