The Pacific Basin is the most dynamic economic region of the world, and has become a model for efficient international specialization, growth, and rising living standards. This book brings together leading economic experts from around the region to appraise and distill the most important issues facing its policy makers, including trade relations, foreign investment flows, and the environment. As we stand at the threshold of the Pacific Century, the lessons this region imparts to us hold the promise of rising living standards around the world.
Part I. Introduction and Overview: 1. Prelude to the Pacific century: overview of the region, leading issues, and methodology Hiro Lee and David Roland-Holst; Part II. US-Japan and Asian Trade Patterns: 2. Cooperative approaches to shifting comparative advantage: the case of bilateral trade between the United States and Japan Hiro Lee and David Roland-Holst; Comment Peter A. Petri; 3. Is There an Asian export model? Marcus Noland; Comment Albert Fishlow; Part III. Regional Trading: Arrangements in the Pacific Basin: 4. Should East Asia go regional? Arvind Panagariya; Comment Barry Eichengreen; 5. Political feasibility and empirical assessments of a Pacific free trade area Hiro Lee and David Roland-Holst; Comment Alain de Janvry; 6. Regionalism in the Pacific basin: strategic interest of ASEAN in APEC Tan Kong Yam; Comment Pearl Imada Iboshi; Part IV. Foreign Direct Investment: Determinants and Consequences: 7. The determinants of foreign direct investment: a survey with application to the United States Peter A. Petri and Michael G. Plummer; Comment Jeffrey H. Bergstrand; 8. Are trade and direct investment substitutes or complements? An analysis of the Japanese manufacturing industry Masahiro Kawai and Shujiro Urata; Comments Julia Lowell; 9. Korea's outward foreign direct investment and the division of labor in the Asia-Pacific Jai-Won Ryou; Comment Chung H. Lee; 10. China's absorption of foreign direct investment Shang-Jin Wei; Comment K. C. Fung; 11. The impact of foreign investment in Indonesia: historical trends and simulation analysis Iwan Azis; Comment William E. James; Part V. Trade Resources and the Environment: 12. Economic development and the environment in China Wang Huijiong and Li Shantong; Comment Mark Poffenberger; 13. Outward orientation and the environment in the Pacific Basin: coordinated trade and environmental policy reform in Mexico John Beghin, David Roland-Holst, and Dominique van der Mensbrugghe; Comment David Zilberman and Linda Fernandez.