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Jakarta Post

Financial regionalism and the rebalancing of global economy

  • John A. Prasetio

    Contributor

Jakarta   /   Tue, April 20 2010   /  09:43 am

The integration of markets on a regional and global basis seems to have motivated the evolution of regional economic arrangements designed to maximize the benefits, as well as to reduce the risk of a globalizing economy. Within East Asia, the share of intra-regional trade was around 55 percent in 2007, and post global crisis, it is expected to continue to be rising steadily.In developing Asia, deepening economic integration has been in part driven by linkages through regional production network as a result of global strategy of multinational corporations. In North East Asia, intra-trade among China, Japan and Korea has become quite intense. They have become the most important or the second most important trading partner with each other.While a de facto real sector integration has been quite advanced, financial integration in East Asia is still at an early stage. The volume of intraregion...