This paper sets out a political economy model of strategic exchange rates, focusing in the importance of external lobbying. Applying it for the recent history of the Japanese yen, we show that pressure from the U.S. trade negotiators contributed to an appreciation of the Japanese yen, as well as...

In this paper we first document the growing importance of intra-East Asian trade in parts and components and capital goods facilitated by foreign direct investment (FDI). Japanese direct investment has a stronger influence on intra-East Asian trade relative to FDI from France and Germany. It is...

This paper provides an analysis of the two channels of regional integration: integration via markets and integration via agreements. Given that East Asia and Latin America are two fertile regions where both forms of integrations have taken place, the authors examine the experiences of these two...