China Center for Economic Research Working Paper NO. E2005007
In Pacific Asia, globalization has resulted in rapidly growing international flows of goods, portfolio capital, and direct investments. At the same time, several countries shift from a command to market economy. Against this background, we analyze the perhaps most popular model used to depict the process of economic integration and development in Pacific Asia, the flying geese pattern of shifting comparative advantage. Our point of departure is that economic and other social processes are best understood in relation to one another. We confine ourselves to intraregional patterns of trade and investment but locate them within the broader framework of global trends.