The Crisis in the U.S. and the Future of East Asian Production Sharing

This paper investigates the potential effects of the recent economic crisis on East Asian production sharing. It suggests that the high interdependency of the global economy has made it unlikely for East Asia to remain immune to the crisis. Indeed, the impacts of the crisis on the regional economy in the long run are likely to be more serious than those in the short term. The crisis could be a factor in accelerating the process of East Asian regional integration, especially in terms of financial integration.