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The optimal path of regional economic integration between asymmetric countries in the North East Asia

机译：东北亚不对称国家之间区域经济一体化的最佳路径

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This paper examines the optimal path of regional integration in the East Asian region from the perspective of Korea, as a country with an intermediate level of technology in the Asian region. Based on the welfare analysis of three types of FTA regimes between technologically asymmetric countries, this paper demonstrate that the optimal path of regional integration for the country with an intermediate technology level would be to form multiple bilateral FTAs, i.e., Hub and Spoke type FTA between technically asymmetric countries from the very initial stage. The second best regime is the multilateral Asia wide FTA. The worst case for a country with an intermediate technology would be to form a FTA with a country with advanced technologies, and extends the FTA with the less developed countries in the later stage. These results imply that the optimal strategy of regional integration for a country with an intermediate technology level, such as Korea, is to form a Hub and Spoke type FTA rather than a bilateral FTA with Japan followed by the participation of other Asian countries. The pre-requirement for the multiple bilateral FTAs is the fundamental industrial restructuring of the Korean industries, such as reallocating the human and" economic resources from the sectors of comparative disadvantage to the sectors with comparative advantage. The successful FTAs assumes the nation-wide efforts involving the massive restructuring cost including the establishment of the social-safety net during the transition period. Moreover, the Asian type fiscal federalism is required for a genuine economic integration in the region.
机译：本文从韩国作为亚洲地区技术水平中等的国家的角度研究了东亚地区的区域一体化的最佳路径。基于技术不对称国家之间三种类型的FTA体制的福利分析，本文表明，技术水平中等的国家的区域一体化的最佳路径将是形成多个双边FTA，即中心和辐条型FTA。从一开始就在技术上不对称的国家。第二好的制度是亚洲范围的多边自由贸易协定。对于具有中间技术的国家，最坏的情况是与拥有先进技术的国家形成自由贸易协定，并在较后阶段扩大与较不发达国家的自由贸易协定。这些结果表明，对于具有中等技术水平的国家（例如韩国）而言，区域一体化的最佳策略是与日本建立Hub and Spoke型FTA，而不是与日本建立双边FTA，然后再由其他亚洲国家参与。多个双边自由贸易协定的先决条件是韩国产业的基本产业结构调整，例如将人力和经济资源从相对不利的领域重新分配给具有相对优势的领域。成功的自由贸易协定承担了全国范围的努力。转型期间将涉及大量的重组成本，包括建立社会安全网；此外，亚洲型的财政联邦制是该地区真正的经济一体化所必需的。

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