We recount East Asia's experience with foreign direct investment (FDI). We document that, contrary to the Rybczynski theorem, capital flows in the region cause the host country's labor-intensive industry to expand and its capital-intensive industry to decline. We also present narrative evidence...

For the last 15 years, computers have been the leading export category from East Asia to the rest of the world. They are produced within regional production and distribution networks. Japan; Republic of Korea; and Taipei,China construct sophisticated technology-intensive parts and components and...

This paper investigates the factors affecting the demand for the Association of Southeast Asian Nations' (ASEAN) labor-intensive exports. Results obtained using a panel data set including exports to 25 countries indicate that an appreciation in ASEAN countries would substantially reduce exports...

This paper considers how exchange rates affect East Asian trade. The evidence indicates that exports produced within regional production networks depend on exchange rates throughout the region while labor-intensive exports depend on exchange rates in the exporting country. These results make...