East Asia's trade and investment: regional and global gains by World Bank. East Asia and Pacific Regional Office

By World Bank. East Asia and Pacific Regional Office

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Some need to liberalize trade policies, and several need to liberalize capital flows further. Most countries will need to make more progress in deregulating labor markets and credit policies and in developing human resources and infrastructure and protecting the environment. Also crucial in many instances is the establishment Page 7 of transparent regulatory and legal frameworks, which influence the quality of FDI. Effective FDI flows also depend on policiesregarding taxes, for examplein the source countries.

Many people inside and outside the Bank provided valuable comments and contributions. Data from the World Bank's International Economics Department were the basis for the analytical parts of the report. The support staff of the report included Carmencita Clay, Okie Moon Dorian, Amara Gumnerdngam, and Jae Shin Yang. Bruce Ross-Larson was the principal editor; Kathryn Kline Dahl copyedited the final manuscript and coordinated publication. 1 Is East Asia Becoming More Interdependent? 3 Expected Trade and Income Benefits of East Asian Liberalization under Option 2 74 Appendix tables A-1 Basic Indicators, 1992 79 A-2 Selected Economic Indicators, 1992 80 A-3 Average Annual Growth of Production, 1980-92 81 A-4 Distribution of East Asian Trade, 1988-92 82 A-5 Distribution of Australian, New Zealand, and North American Trade, 1988-92 84 A-6 Distribution of the European Union's Trade, 1988-92 86 A-7 Commodity Composition of East Asian Exports 88 A-8 Commodity Composition of East Asian Imports 92 Page xi Foreword International trade is the foundation of East Asia's impressive economic growth.

The recent success in the Uruguay Round offers important opportunities for developing-country exports, especially in such areas as agriculture. Progress in unraveling the multifiber arrangement (MFA) would also bring major benefits, especially for suppliers to world textile and apparel markets, although some countries might lose existing MFA rents. Tightened disciplines in gray areas of international trade and an improved safeguards code would also be important in limiting the proliferation of voluntary restraint arrangements.

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