East Asian Integration Cost Analysis

The existing research literatures focus mainly on the model of labordivision, the distribution of interests and the cooperation model of integration ofEast Asia. While from the choice of location theory of regional economic toanalysis integration in East Asia is relatively weak. Integration of East Asiashows the expansion in the production and transfer and the consumer marketformation and development. After World War II, Japan took the lead in EastAsia achieved rapid economic development and has become one of the richestcountries in the world. After60years since the20th century, East Asia hasexperienced production origin’ location choice led by Japan which is alsocalled "Geese Pattern". After80years of20th century, ASEAN and China’seconomic development brings the network mode of production of the EastAsian integration. The same period, the consumer market in East Asia alsoexperiences the location changes from the outward to the inward of the region.After World War II, the East Asian production origin first formatted inJapan, After60years of20th century, through the form of "Geese Pattern" bydirect investment East Asian production origin transferred from Japan to Asia’s"tigers". East Asian production origin through the transfer of industry increasesthe connection among the countries. During this period East Asian consumerproducts market is still dominated by European and American countriesoutside the region, namely East Asian still as the origin of production at thattime.80years after the20th century, China and the four countries of ASEAN’srapid economic development in East Asia increased its weight, which hasabundant labor resources thus the cost advantages of labor-intensiveproduction. China and the four countries of ASEAN’s in turn lead to the originof the East Asian production and make the East Asian production origin’location choice transferred to the ASEAN4and China.So far, Integration in East Asia along with its production origin’ locationchoice in the form of some industry’ continuous transferring. This paper re-examines the history of East Asian integration, based on regionaleconomics from the perspective of the location choice theory, focusing on thechanges of various cost of East Asian integration. During the process of EastAsian production origin and product consumption market transfer, we foundthat the cost of production and transaction explains the deep-seated reasonsfor the transfer, thus affecting the internal factors in East Asia’ location choice.By examining the history of East Asian integration, we want to find theinfluence factors of production origin’ transfer and the costs of location choicein East Asia integration. Explain the cost from the theory of location choice theimpact mechanism; Through the analysis of time-series economic data,measure the trade costs of East Asian integration from an empirical point ofview.