East Asian Economic Regionalism Feasibilities and Challenges

Economic regionalism has become a worldwide phenomenon. Since the Asian financial crisis, East Asian countries are accelerating the ongoing market-driven economic integration as well as institutional economic integration. The question is whether East Asia

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East Asian Economic Regionalism Feasibilities and Challenges

Edited by

AHN, CHOONG YONG Korea Institute of International Economic Policy, KIEP, Korea

BALDWIN, RICHARD E. Graduate Institute of International Studies, Geneva, Switzerland and

CHEONG, INKYO Inha University, Korea

A C.I.P. Catalogue record for this book is available from the Library of Congress.

ISBN-10 ISBN-10 ISBN-13 ISBN-13

0-387-24330-5 (HB) 0-387-24331-3 (e-book) 978-0-387-24330-6 (HB) 978-0-387-24331-3 (e-book)

Published by Springer, P.O. Box 17, 3300 AA Dordrecht, The Netherlands. www.springeronline.com

Printed on acid-free paper

All Rights Reserved © 2005 Springer No part of this work may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, microfilming, recording or otherwise, without written permission from the Publisher, with the exception of any material supplied specifically for the purpose of being entered and executed on a computer system, for exclusive use by the purchaser of the work. Printed in the Netherlands.

Contents

Preface

vii

Editors’ Biographical a Notes

ix

Contributors

x

List of Tables

xii

List of Figures

xiv

Introduction and Overview

xv

Part I: Northeast Asian Views on an EAFTA Chapter 1 China’s Approach to an Institutional Regional Arrangement - Guoqiang Long and Liping Zhang

1

Chapter 2 East Asian Free Trade Agreement: Strategic Aspects for Japan - Kazuhiro Igawa and Bonggil Kim

21

Chapter 3 Evaluation of Recent Progress of FTAs in East Asia – A Korean Perspective - Inkyo Cheong

37

Part II: Southeast Asian Views on an EAFTA Chapter 4 An East Asian FTA: A New Frontier off Economic Cooperation in East Asia - Termsak Chalermpalanupap

57

Chapter 5 Indonesia’s FTA Policy and Its Perspectives on an East Asian FTA - Deddy Saleh

75

v

vi

Chapter 6 An East Asia FTA: A Malaysian Perspective - Mohd Haflah Piei Chapter 7 An East Asian FTA: A Philippine Perspective - John Lawrence Avila

95

121

Part III: Assessment of East Asian Regionalism Chapter 8 T in East Asia – CGE Approach Estimation of Economic Effects of FTAs - Inkyo Cheong

139

Chapter 9 Asian Regionalism: Promises and Pitfalls - Richard E. Baldwin

157

Chapter 10 EU’s Strategy towards East Asian Integration and Regionalism - Sung-Hoon Park

175

Name Index

193

Preface

CHOONG YONG AHN, RICHARD E. BALDWIN, AND INKYO CHEONG East Asia largely ignored the proliferation of regional trade blocs and the subsequent regional integration phenomenon, despite the global wave of free trade agreements (FTAs) in the 1990s. Until recently, East Asian economies had not developed any meaningful economic cooperation schemes covering the whole region. However, in recent years, the growing interdependence in East Asia through trade and financial cooperation heightened d the need for East Asian economies to engage in regional economic cooperation and integration. The Asian financial crisis triggered a rising sense of East Asian identity, and in November 1999, the ASEAN+3 (China, Ja