Handbook on East Asian Economic Integration

Edited by Fukunari Kimura, Professor, Faculty of Economics, Keio University and Chief Economist, Economic Research Institute for ASEAN and East Asia (ERIA), Indonesia, Mari Pangestu, Managing Director of Development Policy and Partnerships, The World Bank, Washington DC, US, Shandre Mugan Thangavelu, Professor, Jeffrey Cheah Institute for Southeast Asia, Sunway University, Malaysia and Institute for International Trade, University of Adelaide, Australia and Christopher Findlay, Honorary Professor, Crawford School, Australian National University, Australia

• Contents:Foreword by Hidetoshi Nishimura ixAcknowledgements xiList of abbreviations xii1 Introduction to the Handbook on East Asian Economic Integration: An overviewof shifting paradigm in globalisation, trade, and investment in East Asia 1Fukunari Kimura, Mari Pangestu, Shandre Mugan Thangavelu, ChristopherFindlay, and Dionisius Narjoko2 East Asian architecture of integration 21Mari Pangestu and Shiro Armstrong3 Modelling Asia-Pacific regional integration 49Peter A. Petri, Michael G. Plummer, and Fan Zhai4 Trade in goods with internationalised production activities 66Toshiyuki Matsuura and Ayako Obashi5 FDI activities and integration in ASEAN and East Asia 88Shandre Mugan Thangavelu, Shujiro Urata, and Dessie Tarko Ambaw6 International population mobility in East Asia 110Aris Ananta and Evi Nurvidya Arifin7 Services 137Christopher Findlay and Hein Roelfsema8 Agricultural development, structural transformation, and East Asian trade 156Kym Anderson9 Institutional reform, regulatory reform, and integration in East Asia 180Rashesh Shrestha and Ha Thi Thanh Doan10 Business impediments to economic integration in Southeast Asia 203Cassey Lee11 Trade creation and utilisation of regional trade agreements 218Kazunobu Hayakawa and Kohei Shiino12 Trade, poverty, and Aid-for-Trade 235Jayant Menon and Anna Cassandra Melendez13 Investment in connectivity 257Andrew Elek and Christopher Findlay14 Connectivity and the geographical simulation model 273Ikumo Isono and Damiaan Persyn15 East Asian financial integration in banking, markets and regulation 299Donald Hanna and Andrew Sheng16 Economic integration, climate change, and sustainable development in East Asia 321Simon Tay17 Energy transition for fuelling economic integration in East Asia 342Venkatachalam Anbumozhi18 Reorganisation of production 366Fukunari Kimura and Dionisius Narjoko19 Skills and human capital development policies of ASEAN 390Shandre Mugan Thangavelu and Wenxiao Wang20 Digitalisation and market integration 413Hosuk Lee-Makiyama21 The economics–security nexus and East Asian integration 435Priya Chacko and Kanishka JayasuriyaIndex 454

‘The fast-growing countries of East Asia have achieved some of the most spectacular economic achievements of all time. Factory Asia followed a different path from Europe and North America. This book explains how this all came about, by tracking the role of trade, investment, supply chains, connectivity, financial integration and trade agreements, clarifying how all this came together to help change people’s lives. At last we have a comprehensive account, written by leading scholars and policymakers from the region.’