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title	:	East Asia's Trade and Investment : Regional and Global Gains From Liberalization Development in Practice (Washington, D.C.)
author	:
publisher	:	World Bank
isbn10 | asin	:	0821329596
print isbn13	:	9780821329597
ebook isbn13	:	9780585264615
language	:	English
subject	East Asia--Commercial policy, Asia, Southeastern--Commercial policy, East Asia--Commerce, Investments, Foreign--East Asia, East Asia--Economic integration.
publication date	:	1994
lcc	:	HF2360.5.E37 1994eb
ddc	:	382.709
subject	:	East Asia--Commercial policy, Asia, Southeastern--Commercial policy, East Asia--Commerce, Investments, Foreign--East Asia, East Asia--Economic integration.

Page iii East Asia's Trade and Investment Regional and Global Gains from Liberalization

Page iv 1994 The International Bank for Reconstruction and Development / THE WORLD BANK All rights reserved Manufactured in the United States of America First printing July 1994 The Development in Practice series publishes reviews of the World Bank's activities in different regions and sectors. It lays particular emphasis on the progress that is being made and on the policies and practices that hold the most promise of success in the effort to reduce poverty in the developing world. This report is a study by the World Bank's staff, and the judgments made herein do not necessarily reflect the views of the Board of Executive Directors or of the governments they represent. The boundaries, colors, denominations, and other information shown on the map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. ISBN 0-8213-2959-6

Page v A year ago, the publication Sustaining Rapid Development in East Asia and the Pacific (World Bank 1993d) identified several issues as major challenges facing the region. As a followup, the present report looks in some depth at one of these issuesnamely, trade and investment reforms. This report, prepared by the Office of the Vice President, East Asia and Pacific Region, is based on economic and operational work in the region and other parts of the World Bank. The principal authors were Ramgopal Agarwala, Peter Petri, and Vinod Thomas. Important contributions were made by Paul Armington, Carlos Braga, Thomas Chan, Hoon Mok Chung, Michael Finger, Jeffrey Hammer, Nobuko Ichikawa, Osamu Kawaguchi, Kali Kondury, Will Martin, Ashoka Mody, Arvind Panagariya, Anthony Rowley, John Shilling, T. G. Srinivasan, Peter Stephens, Yan Wang, Koji Yanagishima, and Alexander Yeats. The report was produced under the general guidance of Gautam Kaji. Many people inside and outside the Bank provided valuable comments and contributions. Data from the World Bank's International Economics Department were the basis for the analytical parts of the report. The support staff of the report included Carmencita Clay, Okie Moon Dorian, Amara Gumnerdngam, and Jae Shin Yang. Bruce Ross-Larson was the principal editor; Kathryn Kline Dahl copyedited the final manuscript and coordinated publication.

Page vi

Page vii Contents Foreword xi Acronyms And Data Note xiii Executive Summary 1 1 A Changing External Environment 12 2 East Asia's Economic Integration 21 3 Trade Reform in East Asia 30 4 Reform of Investment Regimes 41 5 Options for Trade Liberalization 64 Notes 78 Appendix Tables 79 Bibliography 97

Page viii Boxes 1.1 Trade Disputes in Steel 19 2.1 Is East Asia Becoming More Interdependent? 25 4.1 Labor Migration in East Asia 42 4.2 The Electronics Industry in Malaysia 50 4.3 A Growth Pole in East Asia 58 4.4 The Private Sector's Role in Developing Infrastructure 60 5.1 Trade Creation and Trade Diversion 66 Figures 1 Regional Shares of the Increase in Imports, 1992-2000 3 2 East Asia's Trade Surpluses with the United States and the European Union

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