Prelude to the Pacific Century: Overview of the Region, Leading Issues, and Methodology

Structured regionalism in the Asia‐Pacific: Slow but sure progress

“…Although global GDP growth rate decelerated from 4.7 per cent in 2000 to 2.3 per cent in 2001 and then recovered marginally in 2002 (3.0 per cent) 3 , China continued to emerge rapidly as a highly successful trading economy, and accounted for 4.7 per cent of the global merchandise exports in 2002. Lee and Roland-Holst (1998) show that the market expansion that took place in Asia was both vertical and horizontal. A mixture of bilateral trade ties, neomercantilism policy stance, and liberalised and diversified multilateral trade regimes were the driving forces behind the emerging trade patterns in the region.…”

“…During the last decade and a half, the most rapid growth in trade opportunities came instead from the four NIAEs, as well as the ASEAN-4. Lee and Roland-Holst (1998) show that the market expansion that took place in Asia was both vertical and horizontal. First the NIAEs and then the other emerging-market economies of Asia fit into the lower tiers of complex trade hierarchies.…”

“…4 Long-term GDP growth rate of the South Asian economies was not only slow but these economies were also the last and the slowest to embark on export-led or trade-induced growth path. This kind of trade expansion is usually supported by complex commercial alliances in which the new partners enjoy many growth externalities (Lee and Roland-Holst, 1998). Market forces played a notable role in the developments of these trends.…”

“…These intermediate goods can be exported to the subsidiaries of the investing firms in other parts of the world. This kind of trade expansion is usually supported by complex commercial alliances in which the new partners enjoy many growth externalities (Lee and Roland-Holst, 1998). Trade between China, Hong Kong SAR and Taiwan 6 -together referred to as greater China -is large and increasingly closely linked.…”