The ASEAN+3 proposal has attracted attention in Asia and the world. We argue that a free trade agreement (FTA) for ASEAN+3 is beneficial to all member countries due to three factors: (i) existing and expected vertical foreign direct investment linkage between Japan/Korea and ASEAN member...

This paper examines credit rationing implications for patterns of international trade in newly invented products. New product develpment is often associated with risk and its profit is uncertain. When this problem is exacerbated by asymmetric information, credit rationing becomes the optimal...