The Distribution of Production, the Structure of Demand and Changing Models of Trade in East Asia

　　Abstract:The distribution of production in East Asia has passed through evolutions in inter-sectoral, intra-sectoral and product chain distribution as well as changes in production networks and shifting patterns of production. This process impacts the product demand structure for the Asia Region. User end demand for products in East Asia is heavily dependent on a demand structure external to the region, which is reflected in East Asia’s “externally driven” trade model. While the distribution of production in East Asia is not the reason for this externally driven model, it can have an impact on the development of trade through changes in the structure of product demand. The transition of East Asia’s trade model is of essential importance for the development of the regional economy. As the externally driven trade model itself is an outcome of numerous complicating factors, the transition will be a long-term developmental process. As such, efforts to change the reliance of user end demand on foreign markets need to consider comprehensively these complicating factors. At the same time, China will play an increasingly important role in the transitional process of East Asia’s trade model.

　　Author: Feng Yongqi is a PhD Student majoring in World Economics at the Economics School of Jilin University