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The Region in International Business

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The Region in International Business
The Region in International Business

Content
Introduction 2
1 Regional Economic Integration Status Quo of China 2
2 Political Factors behind Regional Economic Integration Arrangements 3
3 Effects of Regional Economic Integration Arrangements on Economic Growth 5
4 Challenges to the Regional Economic Integration Arrangements of China 9
Conclusion 11

Introduction
Economic integration is established to remove the trade barriers among members, and to build various kinds of cooperation and mutual assistance relationship. China has made great progress in the development of regional integration (Hidetaka, 2008). This essay analyses the regional economic integration arrangements of China. It firstly introduces the regional economic integration status quo of China. Then it analyzes the political factors behind the regional economic integration arrangements of China by studying the case of CAFTA (China-ASEAN Free Trade Area). Following this, it further explains how these arrangements have impact on the economic growth of China through trade, FDI (Foreign Direct Investment) and finance. At last, it analyzes the existing obstacles and challenges facing these arrangements.
1 Regional Economic Integration Status Quo of China
Since the first regional trade agreements, Bangkok Agreements, signed in 2001, the development of regional integration of China has made great progress. According to the degree of market integration, economic integration is divided into six types. Among them, Preferential Trade Arrangements and Free Trade Area are two major lower-level organizational forms of China’s regional economic integration (Enzo, 2012). China’s integration stays in relatively low level due to the late start. The other stages including customs union, common market, economic union, complete economic integration are more advanced.
The APEC (Asia-Pacific Economic Cooperation) is the largest regional economic organization in Asia-Pacific. China is deeply influenced by APEC


References: Ahmad Z. B., Chan T. H. & Evan L. (2011) Financial integration of East Asian economies: evidence from real interest parity, Applied Economics, 43(16), pp. 1979-1990 Alemayehu G Alexander K. & Roberta P. (2008) The Impact of Economic Partnership Agreements in Countries of the Southern African Development Community, Journal of African Economies, 17(1), pp. 85-130 Busakorn C., Fung K Cheng H. & Tsai Y. (2008) Estimating the staged effects of regional economic integration on trade volumes. Applied Economics, 40(3), pp. 383-393 Enzo W Fabrizio C. (2006) The Road to Regional Integration in Africa: Macroeconomic Convergence and Performance in COMESA, Journal of African Economies, 15(2), pp. 357-394 Gregory C Hidetaka Y. (2008) The Political Economy of Regionalism in East Asia Integrative Explanation for Dynamics and Challenges. New York: Palgrave Macmillan Kennedy K Lin S. & Michael R. (2010) Impacts of Free Trade Agreements on Agricultural Trade Creation and Trade Diversion, American Journal of Agricultural Economics, 92(5), pp. 1351-1363 Takaaki A Xiaohui L., Chang S.& Peter S. (2009) Trade, foreign direct investment and economic growth in Asian economies, Applied Economics, 41(13), pp. 1603-1612
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