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Econmics of East Asian Economic Integration <Midterm Report>


Edited by NISHIKIMI Koji
Published in March 2008
Edited by Masahisa Fujita, Ikuo Kuroiwa, and Satoru Kumagai The Economics of East Asian Integration: A Comprehensive Introduction to Regional Issues Edward Elgar, September 2011
Chapter 1

1. Introduction
2. Sources of Agglomeration Force

2.1 Home Market Effect
2.2 Labor Mobility
2.3 Vertical Linkage of Industries
2.4 Hub Formation
2.5 Spillover of Technological/Market Information

3. Economic Integration and Industrial Location

3.1 Trade Liberalization
3.2 International Capital Flow
3.3 International Labor Migration

4. Possible Consequences of Economic Integration

4.1 Allocation Efficiency
4.2 Economic Disparities

5. Some Policy Implications

5.1 Strategic Control on Trade Costs
5.2 Benefits and Risks of Policy Coordination

6. Concluding Remarks

Chapter 2

1. Introduction
2. The "Flying Geese" Model

2.1 One-country Model
2.2 Multi-country Model

3. Empirical Evidence

3.1 One-country model
3.2 Multi-country model

4. Conclusions

Chapter 3

1. Introduction
2. The location choice of multinational firms in two- country world

2.1 The location for producing final products
2.2 Linkages in manufacturing sector

3. The location choice of multinational firms in three-country world

3.1 Regional integration as partial liberalization and the enlargement of the integration bloc
3.2 The symmetric plants distribution in two countries

4. Conclusion

Chapter 4

1. Introduction
2. Logistics performances in East Asia
3. Factors influencing transport costs
4. Quasi-linear utility model WITH logistics firm

4.1 The model
4.2 Autarky and the start of trade
4.3 A numerical simulation

5. Conclusions

Chapter 5

1. Introduction
2. Urban as the Magnet of Immigration

2.1 Pooling People and Knowledge Spillovers
2.2 Evidences on Decision Process of Immigration

3. Urban as Nexus of Labor Market Networks

3.1 Network Based Theory of Job Search-Matching
3.2 Evidences on Social Interactions within Labor Market Networks

4. Micro Dynamics of Knowledge Creation, Transfer, and Mobility
5. Modeling the Process of Chinatown Formation
6. Conclusion and Future Research

Chapter 6
Regional Income Inequalities in East Asia pdf (256KB) / Nobuaki Hamaguchi

1. Introduction
2. Some general discussions on agglomeration and regional disparities
3. Regional income inequality

3.1 International income distribution
3.2 Within-country regional income disparities
3.3 Policy reform and regional inequality in Vietnam
3.4 The case of Lao PDR

4. Discussion

Chapter 7
Empirical Analysis of Optimum Currency Area in East Asia pdf (487KB) / Eiji Ogawa and Kentaro Kawasaki

1. Introduction
2. Theory of Optimum Currency Area

2.1. Conditions for a common currency area
2.2 Empirical analysis on a feasibility of a common currency area
2.3 S-VAR vs. G-PPP

3. G-PPP Approach to the OCA

3.1 PPP Puzzle
3.2 Relationship between the PPP and the OCA
3.3 Extended G-PPP for Real Effective Exchange Rate
3.4 Anchor currency and the G-PPP

4. Is East Asia an OCA?

4.1. A common currency basket system
4.2. Empirical analysis
4.3. Analytical results

5. Conclusion

Chapter 8
Energy Problems and Potential of Regional Cooperation in East Asian Region: Implications for Regional Integration / Nobuhiro Horii

1. Introduction
2. Energy problems in the expanded East Asian region

2.1 To explore the cooperation feasibility from the perspective of energy structure.
2.2 Case Study - The status of energy in China and the necessity for cooperation

3. Energy Cooperation in East Asian region at present

3.1 Energy cooperation within the framework of APEC
3.2 Energy cooperation within ASEAN
3.3 Energy cooperation under the framework of ASEAN+3

4. Obstacles to the cooperation and the solutions

4.1. Current energy cooperation
4.2. Toward effective energy cooperation

5. Conclusion

Chapter 9

1. Introduction
2. Production Fragmentation and Network in East Asia

2.1 Characteristics of production fragmentation in East Asia
2.2 Twenty-four hours production operation
2.3 Sophisticate logistic operation under low laor cost

3. Investor Friendly Investment Policy behind Production Fragmentation

3.1 Tax exemption system favored by East Asia
3.2 TRIMs problem
3.3 Solving the problem by FTAs


4.1 High bound tariffs and low MFN ones
4.2 Complex of a large number of bilateral trade arrangements
4.3 Lack of discipline in FTA
4.4 Mitigation of spaghetti bowl syndrome

5. Rules of Origin Issue

5.1 Low utilization of FTAs in East Asia
5.2 Cumbersome rules of origin
5.3 Cumbersome rules of origin

6. Summary and Conclusion

Chapter 10

1. Introduction
2. Optimal Sequence of Economic Integration

2.1 Big Bang versus Gradualism
2.2 Optimal sequence of reforms toward integration

3. Optimal Speed of Economic Integration
4. Conclusion