Regional Trade Cooperation in East Asia: Theoretical Foundations and Practical Choices

Author: Zheng Zhaoyang
Publisher:
Publish Date: 2004-12-01
Features: This book combines specific data with empirical analysis based on research findings from abroad on regional trade groups, which can help address the shortcomings of domestic research in this area. Additionally, the theoretical analysis and empirical results presented can serve as a reference for studying China's entry into the WTO, the establishment of the China-ASEAN Free Trade Area, and further economic cooperation in East Asia under the framework of "10+3."
In terms of theory, the impact of regional trade on trade and welfare has been extensively discussed abroad. For example, the textbook "International Economics" has already pointed out that customs unions can create trade creation and trade diversion effects, potentially having positive or negative impacts on the member countries. The quantitative analysis in this book can lay the foundation for studying the trade flows and welfare effects of trade groups. Second, in analyzing the steps and impacts of establishing trade groups in East Asia, this book employs a simulation method to examine the formation of trade groups in the region. The simulation method involves classifying the major countries in East Asia into developed and developing countries based on differences in their factor endowments. Third, in terms of empirical analysis, this book uses the Pooling Data method to analyze trade data from 1990, 1992, 1994, 1996, 1998, and 2000, thereby determining the impact of various trade groups on trade flows and trends. It also examines changes in trade volumes before and after the formation of trade groups, providing an empirical basis for testing the trade creation and trade diversion effects of these groups. Fourth, with the rapid development of regional trade groups internationally, their influence has grown significantly. China has also changed its past stance of not joining any regional trade groups, reaching an agreement with ASEAN to establish a free trade area within 10 years. The analysis of the impact of regional trade groups in this paper can provide valuable lessons for China's future participation in such groups.