Why is the East Asia Industrial Corridor Needed

The East Asia Industrial Corridor Project, in particular the Southern Corridor and its extension, can be a path-breaking effort for attaining both deepening economic integration and narrowing development gaps. New economic thoughts claim the necessity of comprehensive approach in which various policy modes and a number of stakeholders are effectively coordinated. 1. Deepening economic integration and narrowing development gaps The Economic Research Institute for ASEAN and East Asia (ERIA) was established to conduct concrete policy research for the development of our region, particularly to (i) deepen economic integration; (ii) narrow down development gaps; and (iii) attain sustainable economic development. The ERIA believes that the new wave of international trade theories, namely, the fragmentation theory and new economic geography, can be a powerful tool in designing our development strategies for these goals. The new economic thought tells us how globalizing forces can be utilized effectively to relocate economic activities from existing industrial agglomerations to relatively lagging-behind countries or regions and to expand the frontier of international production networks. With the help of policies that are properly designed, implemented, and backed by rigorous economic and physical analyses, globalizing forces can be a blessing rather than a curse by accelerating economic growth and enhancing national welfare with poverty alleviation