Trade and Capital Flow among Asian Economies

Trade and capital are important in the Asia region. Trade in the APEC region has been increasing, but the large rise in China’s exports has also been disturbing as it exhibits export substitution. The first two papers conclude that every economy has gained in trade, though some are more successful than others. And that rise in export has a lot to do with a rise in foreign direct investments. Macroeconomic stability is the pre-condition to growth. Empirical studies show that the lack of stability has encouraged capital to flee an economy. Similarly, a market-oriented, price-driven and matured financial market provides an alternative source of funding. The lesson in economic development is that success in economic growth requires both an externally friendly market environment as well as consistent and favourable internal policies.

Chris Rowley is a Professor at the Cass Business School at City University, London, and is Editor of the journal Asia Pacific Business Review. He is also a member of the Editorial Board of Personnel Review. He has consultancy experience with unions, business enterprises and government departments and is a respected author.Kui-Wai Li is an Associate Professor in the Department of Economics and Finance, and Director of the APEC Study Center, Faculty of Business at the City University of Hong Kong. His research work includes political economy, financial and economic development, trade and globalization, and writes on China, Asia and world economies. Author of three books, his papers appear in world journals, and has been consulted by international institutions, foreign governments and business.