China and East Asia: An Appraisal of Regional Economic Integration

Three Taiwan-based economists evaluate regional economic integration in East Asia, using trade indicators to analyze the degree of trade concentration among East Asian nations, and employing the gravity model to identify key factors influencing bilateral trade flows among them. China is expected to play a key role in East Asia's economic development, and empirical analysis for the period 1990-2005 indicates that East Asia has already evolved into a trading block, expected to become one of three dominant blocks in the global economy. The study, which highlights the key role played by geographical distance and market size, suggests that the impact of the Association of Southeast Asian Nations (ASEAN) for East Asian trade will remain limited in the future. Journal of Economic Literature, Classification Numbers: F15, F31, O53, P33. 7 tables, 41 references.     

China's Emergence and Impact on Technology in East Asia: The Case of Machinebuilding

Two Taiwan-based economists estimate the technology content of exports by the machinebuilding industry of the East Asia region during 2004-2008, using comparative analysis to clarify changes in the relative competitiveness of four East Asian nations (China, Japan, South Korea, and Taiwan) accompanying the formation of a regional trading bloc and production networks. In particular, they examine the technology content of these countries' machinebuilding sub-industries' exports within the Southeast Asian market (documenting the rise of the machinebuilding industry in China) as well as the penetration of Japanese, South Korean, and Taiwanese sub-industries into China's market. The results point to areas of emerging competition among China, South Korea, Japan, and Taiwan for East Asian markets, which can only be expected to intensify in the future. Journal of Economic Literature, Classification Numbers: F14, F15, F36, O14, P23. 7 tables, 36 references.