The Change in the Structure of the Japanese and East-Asian Economies : A Quantitative Analysis of the Effect of Trade Liberalization

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The liberalization of Trade had contributed to East-Asia's Economic Development. However after the currency crisis in Asia, that happened in 1997, the development seemed to be stopped To prevent such crisis from occurring again, East-Asian countries have strengthened their economic relations in broader range of areas. Many countries have been making effort for concluding Free Trade Agreement (FTA)s that liberalize trade only among certain countries. While the history of FTAs is short, now many countries are endeavoring to establish wider ranges of FTAs. So FTAs are of particularly high interest to us.Urata studied about FTAs in all aspects and found out that FTAs have promoted international trade among the member nations. Furthermore he showed that in theory FTAs restrict the trade with nonmember nations, but that in practice they don't.Kondo has developed the efficient calculation method to rearrange the rows and columns in a triangle. The triangular system of Input-Output table, in w … More hich all the squares fall below the diagonal running from upper left corner to the lower right corner of the matrix, is the most important analytical tool to clarified the structure of an economy. He also applied the method to Waste Input-Output Table (WIO) and examined the efficient recycling strategy.Washizu clarified the structure of East-Asian development from the aspect of Input-Output analysis. First I reviewed previous studies which are showed by W. Leontief for the structure of American development and by Iwao Ozaki for the structure of Japanese development respectively. As the result it was showed that the structure of present East-Asia's development can be reinterpreted with reference to those studies. Due to a lack of statistical information, it should be difficult for us to demonstrate the structure of East-Asia's development directly. For that reason, the review of previous study, along with fragmented information, helped us to understand the economic meaning of present East-Asia's development. Less