This
RSIS Working Paper issue no. 253 dated 17 January 2013 by Pradumna B
Rana and Chia Wai-Mun entitled Strengthening Economic Linkages between
South Asia and East Asia:The Case for a Second Round of “Look East”
Policies can be accessed by clicking: http://www.rsis.edu.sg/publications/workingpapers/wp253.pdf
This paper argues that South Asian countries need to embark on a second round of “Look East” Policies (LEP2) to (i) link themselves to production networks in East Asia and (ii) develop production networks in manufacturing and services within their region. Such policies would allow both regions to benefit mutually and in a shared manner not only from the static complementarities of the Hecksher-Ohlin type but also the dynamic complementarities based on augmented product fragmentation and new geography theories proposed by Jones and Kierzkowski (1990) and Kimura and Mitsuyo (2005). As in East Asia, economic integration between these two regions would increase and a virtuous cycle would be established between integration, economic growth and welfare. LEP2 would also poise South Asia to benefit from the gradual but encouraging opening of Myanmar, a node for South Asia–East Asia relations and connectivity. The key components of LEP2 in South Asia should comprise (i) completing the economic reform process that began in the early 1990s by focusing on the remaining microeconomic reforms (ii) lobbying and negotiating to participate in various on-going regional trade and financial cooperation efforts in East Asia (iii) creating a trade-friendly environment “at the border” and “behind the border” and (iv) improving “beyond the border” connectivity and logistics with East Asia to reduce trading costs between the two regions.
Keywords: regional economic integration, production networks, South Asia, East Asia, international trade, foreign direct investment.
Click on the following link to download the working paper
http://www.rsis.edu.sg/publications/workingpapers/wp253.pdf
Bio
Dr Pradumna B. Rana is Associate Professor of International Political Economy (IPE) at the S. Rajaratnam School of International Studies (RSIS) of the Nanyang Technological University (NTU). He is also the Coordinator of the Master of Science in IPE programme and the Coordinator of Economic Multilateralism and Regionalism Studies at RSIS’ Centre for Multilateralism Studies. Previously, he was the Senior Director of the Asian Development Bank’s (ADB’s) Office of Regional Economic Integration, which spearheaded the ADB’s support for Asian economic integration. He obtained his PhD from Vanderbilt University, where he was a Fulbright Scholar and a Masters in Economics from Michigan State University and Tribhuvan University. He has authored/edited 15 books, and published over 50 articles in international scholarly journals. Most recently, he edited a book entitled The Renaissance of Asia: Evolving Economic Relations between South Asia and East Asia (World Scientific Publishers). He also co-edited books on Pan-Asian Integration: Linking East and South Asia (Palgrave Macmillan) and National Strategies for Regional Integration: South and East Asian Case Studies (Anthem Press, UK).
Asst Prof Chia Wai Mun obtained her Bachelor’s degree in Economics from the University of London with First Class Honours in 1996. She was then awarded the Datuk Paduka Hajjah Saleha Ali Academic Outstanding Award for her exceptional academic performance at international level in 1997. In 1998, with the support of the London School of Economics (LSE) Scholarship, she pursued her Master’s degree at LSE. In 2006, she graduated with a PhD degree from NTU. She is currently Assistant Professor at the Division of Economics, NTU. Prior to joining NTU, she was an industry analyst at the Federation of Malaysian Manufacturers. Her current research interests are international macroeconomics, economic integration in East Asia and cost-benefit analysis. She is an assistor editor to the Singapore Economic Review. She is also a research consultant to the ASEAN Secretariat. She has published widely in internationally reputable journals such as the World Economy, Economic Record and Journal of Economic Dynamics and Control.
No. 253 dated 17 January 2013
Strengthening Economic Linkages between South Asia and East Asia:
The Case for a Second Round of “Look East” Policies
By Pradumna B Rana and Chia Wai-Mun
Strengthening Economic Linkages between South Asia and East Asia:
The Case for a Second Round of “Look East” Policies
By Pradumna B Rana and Chia Wai-Mun
This paper argues that South Asian countries need to embark on a second round of “Look East” Policies (LEP2) to (i) link themselves to production networks in East Asia and (ii) develop production networks in manufacturing and services within their region. Such policies would allow both regions to benefit mutually and in a shared manner not only from the static complementarities of the Hecksher-Ohlin type but also the dynamic complementarities based on augmented product fragmentation and new geography theories proposed by Jones and Kierzkowski (1990) and Kimura and Mitsuyo (2005). As in East Asia, economic integration between these two regions would increase and a virtuous cycle would be established between integration, economic growth and welfare. LEP2 would also poise South Asia to benefit from the gradual but encouraging opening of Myanmar, a node for South Asia–East Asia relations and connectivity. The key components of LEP2 in South Asia should comprise (i) completing the economic reform process that began in the early 1990s by focusing on the remaining microeconomic reforms (ii) lobbying and negotiating to participate in various on-going regional trade and financial cooperation efforts in East Asia (iii) creating a trade-friendly environment “at the border” and “behind the border” and (iv) improving “beyond the border” connectivity and logistics with East Asia to reduce trading costs between the two regions.
Keywords: regional economic integration, production networks, South Asia, East Asia, international trade, foreign direct investment.
Click on the following link to download the working paper
http://www.rsis.edu.sg/publications/workingpapers/wp253.pdf
Bio
Dr Pradumna B. Rana is Associate Professor of International Political Economy (IPE) at the S. Rajaratnam School of International Studies (RSIS) of the Nanyang Technological University (NTU). He is also the Coordinator of the Master of Science in IPE programme and the Coordinator of Economic Multilateralism and Regionalism Studies at RSIS’ Centre for Multilateralism Studies. Previously, he was the Senior Director of the Asian Development Bank’s (ADB’s) Office of Regional Economic Integration, which spearheaded the ADB’s support for Asian economic integration. He obtained his PhD from Vanderbilt University, where he was a Fulbright Scholar and a Masters in Economics from Michigan State University and Tribhuvan University. He has authored/edited 15 books, and published over 50 articles in international scholarly journals. Most recently, he edited a book entitled The Renaissance of Asia: Evolving Economic Relations between South Asia and East Asia (World Scientific Publishers). He also co-edited books on Pan-Asian Integration: Linking East and South Asia (Palgrave Macmillan) and National Strategies for Regional Integration: South and East Asian Case Studies (Anthem Press, UK).
Asst Prof Chia Wai Mun obtained her Bachelor’s degree in Economics from the University of London with First Class Honours in 1996. She was then awarded the Datuk Paduka Hajjah Saleha Ali Academic Outstanding Award for her exceptional academic performance at international level in 1997. In 1998, with the support of the London School of Economics (LSE) Scholarship, she pursued her Master’s degree at LSE. In 2006, she graduated with a PhD degree from NTU. She is currently Assistant Professor at the Division of Economics, NTU. Prior to joining NTU, she was an industry analyst at the Federation of Malaysian Manufacturers. Her current research interests are international macroeconomics, economic integration in East Asia and cost-benefit analysis. She is an assistor editor to the Singapore Economic Review. She is also a research consultant to the ASEAN Secretariat. She has published widely in internationally reputable journals such as the World Economy, Economic Record and Journal of Economic Dynamics and Control.
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