International finance and Asian regionalism

This article examines the linkages between changes in international capital movements and currency values on the one hand and Asian regionalism on the other. It argues that economic ties within Asia in the late 1980s and early 1990s can be traced primarily to the increasing values of currencies in Japan, Taiwan, South Korea and I-long Kong. Foreign-direct investments from companies in these countries increased throughout the Asian region. Intra-regional trade grew rapidly as well. Still, by the turn of the century, in contrast to regionalism in Europe, that in Asia remained deeply institutionalized and far less responsive to any central direction from potential leaders such as Japan.