Cross-border National Economy In The Subregion

It is believed that the Economic Globalization and Regional Integration have become the two major trends of the world development since the 1950s. And as one phase of the Regional Integration, Subregional Economic Cooperation (hereinafter referred to as SEC) has played an important role in the East Asia.Actually, on the basis of studying the SEC in the east even the whole Asia, it is no difficulty to realize the majority of the member-regions are inhabited by large groups of Ethnics, where the problems of adequate food and clothing for most of people have not thoroughly been resolved yet because of the draggling development. Therefore, on the perspective of the Ethnic Economics, the thesis puts forward a new developing conception in SEC by applying synthetically theories and methods of International Economics and Institutional Economics, so as to enrich the theory of SEC as well as broaden the research scope of Ethnic Economics and International Economics.In general, the thesis can be divided into tow categories:The first part is the Chapter 1, which gives a comprehensive introduction of the theory of SEC. Based on the discussion of the cause of the phenomenon and its feasibility. Additionally, the thoughts concerning the connotation of SEC and its features from both home and abroad have been summarized.As the main body of the paper, the second category consists of two Chapter-Chapter2 and 3, which explains specifically the new developing conception on SEC from view of EE. According to the analysis of the dualism of Ethnics and Ethnic Economy and the presence of the economy of minorities, It is believed that the national economy and the economy ofminorities within one country coexist in the SEC. the SEC hence shall be effected by the factor of Ethnic (Nation-state in a broad sense and Minorities in a narrow sense). The impact of Ethnic to the SEC includes both affirmative effect and impeditive effect. The affirmative effects embody the similarity and continuity of the natural basis and cultural environment in the subregions that consists of the frontier areas of member-countries as well as the abundant and mysterious resources of minorities that are in favor of the development of the SEC ,whereas the impeditive effects illustrate that there is a huge gap between the mainstream economy and economy of minorities, what's more, such the non-normal institution as concepts, custom etc have restricted the entrance of the modern culture and development . Simultaneously, the independence of the national interests still forms the obstacles in the SEC on the perspective of nation in abroad sense. Virtually, the presence of the impact of the factor of Ethnics leads to the increase of the transaction costs during the procedure of institutional transformation in accordance with institution economics. In order to reduce the transaction costs, a mechanism is suggested.In light of the above views, it is reasonable to conclude that the mainstream economy and economy of minorities within the Subregion should be jointly developed ,which is considered as one of the most important approaches facilitating the SEC. the absorbability of economy of minorities in the development of SEC not only creates a sound opportunity for minorities of the member-countries to eliminate the poverty, but also provides the new power and cooperative program for SEC so as to ensure the further development of SEC in the process of the transformation of the impact of the factor of the ethnics.