A yen bloc in Pacific Asia: natural economic symbiosis or overblown rhetorics?

Abstract

Unlike earlier studies, this paper argues that the relevant determinants of East Asian integration ought to be gravity (proximity and size of the regional economics). Using a gravity model of 1975-95 merchandise trade flows, strong evidence was found by East Asian economies integrating and interacting like never before. Interestingly, the most recent evidence also suggests that Japan is in danger of losing its place at the centre of this potentially self-sustaining economic system. In other words, the East Asian situation is still unfolding as the regional economies experience a dynamic process of changing comparative advantage which is enhancing their competitiveness against one another, as well as against other developed economies, including Japan.

Bilateral intra-industry trade flows and intellectual property rights protection: first empirical evidence

“…The analyses in this study utilize cross-sectional data of 50 countries for two years, 1995 and 2000, 1 using gravity models of trade as in Choudhry et al (2000), Subhash and Chua (2000) and Thornton and Goglio (2002). The dependent variable is total bilateral intra-industry trade flow (and its two components) between country i (South Africa) and country j (South Africa's trading partner) at time t (i.e.…”

An Examination of the Formation of Natural Trading Blocs in East Asia

“…On the issue of regionalization centered on Japan, Frankel (1992), using a separate dummy variable speciªcally for bilateral Asian trade with Japan, found little evidence in the regional trade patterns that Japan is transforming itself into a center of trade. In contrast, Choudhry, Abu-Bakar, and Wylie (2000), also using a simple gravity model of trade ºows within East Asian countries (including Hong Kong and Taiwan), concluded that East Asian intraregional trade centered on Japan goes beyond what can be explained by the gravity variables.…”