ABSTRACT
For three decades preceding 2010, private and public investments were perceived to be the main drivers of growth in many Asian economies, though the role of reduced financial risk and higher foreign direct investment (FDI) cannot be denied (Ghazanchyan, Stotsky and Zhang 2015). The Asian crisis during 1997–98 demonstrated the economic linkages between the countries in the region as well as each country’s exposure to economic problems that beset its neighbours. However, the remarkable success by East Asian economies over the past decade in terms of deepening integration in advanced international production networks (IPNs) and value chains has contributed significantly to increase in intraregional trade in Asia, particularly in the production of parts and components.
