Do institutions matter for trade in Asian countries?

The rise of Asia as a major economic power and global growth centre is an unprecedented development in the contemporary world. By any standard, Asia’s economic performance has greatly improved; per capita incomes have risen much more rapidly in the past few decades as the population growth rate has fallen while the rate of increase in output has risen. The absolute number of people living in poverty, while still large, has decreased dramatically. Asia’s participation in the international economy has increased, with greatly reduced barriers to international transactions. Trade and economic integration within the region and with the rest of the world has played an important role in Asia’s economic success. However, the current financial crisis has severely affected global trade, including exports from the Asia-Pacific region. As a result, economic integration has become a major challenge for the entire region. Quite naturally, the ongoing financial and economic crisis reinforces the need for economic integration.

Related Subject(s): Economic and Social Development