The year 2015 witnessed significant events in the area of finance, trade and investment, which brought Asia to the centre of the world stage. The Trans-Pacific Partnership reached its basic agreement among the 12 member countries in October; the Chinese Yuan was included into the Special Drawing Rights basket of currencies at the International Monetary Fund in November; the ASEAN Economic Community came into force; and the Asian Infrastructure Investment Bank was established with the 57 founding members in December.
Within and outside the region, there is an urgent need to understand the underlying economic structures that brought about these events, which have global implications. The Centre on Asia and Globalisation at the National University of Singapore launched a series of conferences on ‘Evolving Finance, Trade and Investment in Asia’ with the aim of strengthening research capacity in Asia to influence regional policymaking. Looking forward, the conference will provide an annual platform for scholars to discuss the latest findings and to disseminate them to business leaders and policymakers. This book contains scholarship presented at the inaugural international conference in September 2015, and was originally published as a special issue of the International Economic Journal.
Introduction: Evolving Finance, Trade and Investment in Asia Tomoo Kikuchi
1. The Role of China, Japan, and Korea in Machinery Production Networks Ayako Obashi and Fukunari Kimura
2. Global Value Chains and China’s Exports to High-income Countries Yuqing Xing
3. Rethinking the Exchange Rate Impact on Trade in a World with Global Value Chains Kevin C. Cheng, Gee Hee Hong, Dulani Seneviratne and Rachel van Elkan
4. Exchange Rates and Production Networks in Asia: A Twenty-first Century Perspective Willem Thorbecke
5. Mega-FTAs and the WTO: Competing or Complementary? Shujiro Urata
6. Heterogeneous Patterns of Financial Development: Implications for Asian Financial Integration Linh Bun and Nirvikar Singh
7. Regional Financial Integration in East Asia against the Backdrop of Recent European Experiences Ulrich Volz
8. Does Inflation Targeting in Asia Reduce Exchange Rate Volatility? Alice Y. Ouyang and Ramkishen S. Rajan