Inter-Country Trade Patterns in Europe and the Asia-Pacific: Regional Structure and Extra-Regional Trends

This paper examines the regional structure and extraregional trends of Europe and the Asia-Pacific. The formation of the European Community and the latter's potential enlargement to Eastern Europe contrasts with the Asia-Pacific which has resisted economic and political integration and pursued economic linkages with countries outside of the region. The difference in regionalization tendencies have resulted in more geographically defined subregions in Europe, and greater territorial fragmentation in the Asia-Pacific. Even though European countries exhibit tighter interlinkages with one another, the evidence indicates that their extra-regional links compare favorably with the Asia-Pacific for much of the period from 1965 to 1994.