Trade in Developing East Asia: How it Has Changed and Why it Matters

58 Pages Posted: 28 Aug 2018

See all articles by Ileana Cristina Constantinescu

Ileana Cristina Constantinescu

World Bank

Aaditya Mattoo

World Bank - Development Research Group (DECRG)

Michele Ruta

Economic Research Division, WTO; Columbia Business School - Economics Department; International Monetary Fund (IMF)

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Date Written: July 13, 2018

Abstract

East Asia, for long the epitome of successful engagement in trade, faces serious challenges: technological change that may threaten the very model of labor intensive industrialization and a backlash against globalization that may reduce access to important markets. A detailed analysis of the evolution of East Asia's trade and trade policy in goods and services leads to the conclusion that how East Asia copes with these global challenges will depend on how it addresses three more proximate national and regional challenges. The first is the emergence of one East Asian country, China, as a global trade giant?accounting for nearly one-seventh of global exports and one-tenth of global imports -- which is fundamentally altering the trading patterns and opportunities of its neighbors. The second is the asymmetric implementation of national reform -- remarkable openness to goods trade and investment coexists with relative restrictiveness of services policies -- which is affecting the evolution of comparative advantage and productivity in each country. The third is the divergence between the relatively shallow and fragmented agreements that regulate the region?s trade and investment and the growing importance of regional and global value chains as crucial drivers of productivity growth.

Keywords: International Trade and Trade Rules, Common Carriers Industry, Food & Beverage Industry, Plastics & Rubber Industry, Business Cycles and Stabilization Policies, Construction Industry, General Manufacturing, Pulp & Paper Industry, Textiles, Apparel & Leather Industry, Export Competitiveness, Industrial and Consumer Services and Products, Transport and Trade Logistics

Suggested Citation

Constantinescu, Ileana Cristina and Mattoo, Aaditya and Ruta, Michele, Trade in Developing East Asia: How it Has Changed and Why it Matters (July 13, 2018). World Bank Policy Research Working Paper No. 8533. Available at SSRN: https://ssrn.com/abstract=3238376

Ileana Cristina Constantinescu (Contact Author)

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Aaditya Mattoo

World Bank - Development Research Group (DECRG) ( email )

1818 H Street, N.W.
Room MC 3-327
Washington, DC 20433
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202-676-9810 (Fax)

HOME PAGE: http://econ.worldbank.org/staff/amattoo

Michele Ruta

Economic Research Division, WTO ( email )

Rue de Lausanne 154
CH-1211 Geneva
Switzerland

HOME PAGE: http://www.iue.it/Personal/Fellows/MicheleRuta/Welcome.htm

Columbia Business School - Economics Department ( email )

420 West 118th Street
New York, NY 10027
United States

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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