Seeking a New Role: Japan Edges Towards an Asian Economic Grouping

• Published in: Far Eastern economic review 1989-06, Vol.144 (23), p.51
• Main Authors: Smith, Charles, Holloway, Nigel, Clifford, Mark, Moore, Jonathan, Rowley, Anthony, Johnstone, Bob, Perry, Chris, Danker, Stella
• Format: Magazinearticle
• Language: English
• Subjects: Business conditions; Cooperation; Economic development; Economic policy; Foreign exchange; Foreign investment; International trade; Manycountries; NICs; Politics; Regionalism
• ISSN: 0014-7591; 1563-9339

Some Japanese central government ministries are grappling with the idea of establishing an Asian economic grouping in which Japan would take the leading role. East Asian economic integration reflects a growing cohesiveness in the region and anticipation of a shrinking demand for goods by the US. Japanese leadership in an Asian economic grouping would, however, require difficult adjustments for the Japanese, such as further liberalization of its economy and import policies, more direct investment in regional manufacturing facilities, and technology transfer to outside Japan. Compared with investments in the US and Europe, Japanese investment in Asia's newly industrialized countries still lags. Japan has begun taking a more assertive stance at the General Agreement on Tariffs and Trade's recent multilateral trade negotiations. The technological gap between Japan and its neighbors in the region is widening.