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The phenomenon of proliferation of preferential trade agreements, bilaterally and regionally, was particularly more pronounced both in the aftermath of the regional financial and economic crisis that affected East Asia in 1997-98 and in the inability of the WTO to yield any substantial outcome to improve growth prospects of the Asian economies. This paper analyses the implications of ASEAN's ongoing FTAs and examines its role in fostering deeper economic integration within ASEAN and in Asia. It analyses the evolution and characteristics of FTA proliferation in ASEAN, identifying major trends. The paper argues that in their present state, if not properly designed and managed, there are valid concerns that these FTAs could end up becoming a stumbling block towards integration efforts. Implementation integrity among FTA members therefore remains a key to its success, and empirical and policy research needs to be much more forthcoming in this area in order to fully understand the economic ramifications of these FTAs. [ABSTRACT FROM AUTHOR]

The article discusses the background and progress of present financial cooperation initiatives, new chances offered and evolution of new regional economic architecture in East Asia. The factors behind the development of recent financial cooperations are the deepening regional economics and financial interdependence, response to the Asian financial crisis from 1997-1998, and European monetary integration. It is inferred that East Asia can add to the stability of global finance through achieving sustainable economic development and financial stability by instituting of resilient national financial systems.

The study of financial market efficiency has important implications in terms of global macroeconomic stability. The case of six selected East Asian stock markets (China, Japan, Hong Kong, Malaysia, Singapore and South Korea) during the Asian Financial Crisis (AFC) and Global Financial Crisis (GFC) is analysed here using a battery of well-known econometric techniques that starts with traditional unit root testing for random walk behaviour. The six countries were selected on the basis of market capitalization to offer insights into the behaviour of the most relevant markets in the region. The results show that during both crises, these markets exhibited significant inefficiencies. This is shown by the fact that positive correlations characterized markets returns behaviour in general, except fo r South Korea and Hong Kong, during the GFC. Of particular note is the case of China; its stock markets suffered losses and high volatility during the GFC and exhibited increasing correlations with other stock markets in the region, showing progressive levels of integration within the region and more exposure to global events. [ABSTRACT FROM AUTHOR]

The large capital inflow into East Asia was accompanied by a steady decline in the risk premia levied on Eurobonds issued by East Asia, a phenomenon indicative of over-lending rather than over-borrowing. The Asian financial crisis is the opposite phenomenon -- investor panic as opposed to investor exuberance. Prudence would suggest limits on short-term foreign borrowing by domestic banks and corporations, greater exchange rate flexibility, and international co-ordination on financial supervision and reporting. Financial fire-fighting should be improved by reform of the governance of the IMF and of IMF standard operating procedures; and by the establishment of regional monetary, bodies and an international bankruptcy court. [ABSTRACT FROM AUTHOR]

Reports on the economic crisis in Malaysia, and its alternative approach in managing that crisis. Impact of East Asian economic crisis on Malaysia; Strategies to revive the economy; Sustainability of the Malaysian recovery process; Difference of Malaysian response to crisis from response by other affected Asian countries; Effectiveness of the recovery measures; Challenges to sustain recovery.

Assesses the major responses of the Association of South-East Asian Nations (ASEAN), Asia Pacific Economic Cooperation (APEC), and the Asian Development Bank (ADB) to the East Asian financial crisis. Measures to promote regional recovery; Co-ordinated policy responses; Institutional innovations for responding to the crisis.