Sakakibara, EisukeYamakawa, Sharon2014-05-052014-05-052003-06https://hdl.handle.net/10986/18174The authors analyze the patterns of East Asia's trade and foreign direct investment (FDI) from a global and intraregional perspective, taking into account the importance of trade and FDI interlinkages. They propose two regionally-focused approaches to promoting trade and FDI in East Asia-regional agreements and regional production networks. The East Asia crisis strengthened appeals for regional cooperation in the financial area. As a result, a number of financial arrangements and initiatives have emerged since the crisis, the most prominent of these, the Chiang Mai Initiative. (The Association of Southeast Asian Nations plus China, the Republic of Korea, and Japan decided at their meeting in Chiang Mai, Thailand, in May 2000, to establish a regional network of swap arrangements.) While opening of the capital account is considered desirable in the long run, it is associated with considerable risk, particularly if macroeconomic policies are not sound and financial supervision and regulation is weak. Because of the potential volatility associated with floating regimes and the desire to avoid another crisis in the region, the authors discuss a number of options.en-USCC BY 3.0 IGOACCESS TO INFORMATIONAVERAGE TRADECAPITAL ACCOUNTCAPITAL MARKETCAPITAL MARKETSCOMPARATIVE ADVANTAGECOMPARATIVE ADVANTAGESCOMPETITIVE ADVANTAGESCOMPETITIVENESSCROWDING OUTCURRENCYDEBTDEVELOPED COUNTRIESECONOMIC DEVELOPMENTECONOMIC HISTORYECONOMIES OF SCALEEXPORT PATTERNSEXPORT SHAREEXPORT SHARESEXPORTSEXTERNALITIESFINANCEFLOATING REGIMESFOREIGN AFFILIATESFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTMENTFOREIGN INVESTORSFOREIGN TRADEGDPGLOBAL INTEGRATIONGLOBAL MARKETSGROWTH RATEIMPORTSINCOMEINTERNATIONAL ORGANIZATIONSINTERNATIONAL PRODUCTIONINTRAREGIONAL TRADELIVING STANDARDSMACROECONOMIC POLICIESMACROECONOMIC STABILITYMEASURE OF TRADEMULTILATERAL APPROACHNATURAL RESOURCESOPENNESSORGANIZATIONAL STRUCTUREPATTERN OF TRADEPATTERNS OF TRADEPREFERENTIAL ARRANGEMENTSREGIONAL INTEGRATIONREGIONALISMSHARE OF WORLD EXPORTSTAX SYSTEMSTOTAL FACTOR PRODUCTIVITYTRADETRADE FLOWSTRADE INTENSITYTRADE INTENSITY INDICESTRADE MORETRADING PARTNERSTRANSPARENCYVALUE OF EXPORTSWORLD TRADEWTO FOREIGN DIRECT INVESTMENTSTRADE POLICYREGIONAL TRADE AGREEMENTSREGIONAL INTEGRATIONFINANCIAL LIBERALIZATIONEAST ASIASWAP TRANSACTIONSCAPITAL ACCOUNTMACROECONOMIC POLICYFINANCIAL REGULATIONFLOATING RATE PARTICIPATIONFOREIGN DIRECT INVESTMENTSWTO10.1596/1813-9450-3079