The Analysis Of Impact On Economic Integration In Northeast Asia After The Economic Crisis Shock

Economic globalization and regional economic integration are the two main trends in the modern society; my article starts with the relationship of economic globalization and regional economic integration.Economic globalization means the integration of the world, originated the drive for profits and the nature of market economy, that is to say, just the defects of the original market results in this kind of system innovation which makes people gain more than the original system. But this new change in institutions also has inestimable operating cost which can be summarized by risk; the global economic crisis is the biggest negative impact of the economic globalization. Sub-prime crisis is caused by economic globalization, and at the same time the crisis spreads around the world also by economic globalization. We can say that sub-prime crisis is the biggest negative impact of the economic globalization.In order to reduce the negative impact of economic globalization (the cost of economic globalization which is rated as institution), there is another innovation institution—regional economic integration. We can find that the aim of regional economic integration is to reduce the uncertainty and risk caused by economic globalization and gain the potential profit which can not reached in the original institution. The two aims are just two aspects of the same process.Joined in the regional economic integration can obtain traditional profits and non-traditional profits; and like the economic globalization, there is huge cost in the process of establishing the regional economic integration. All the cost can be regarded as negotiation cost, so the initial development level of every member in the regional economic integration is the key point.By comparing the potential profits and the expectant cost of establishing the regional economic integration, we can find conclusions as follow: if the potential profit is more than the expectant cost, the regional economic integration will be built, and vice versa. This article is just a prediction of economic integration in Northeast Asia after the sub-prime crisis shock based on the change of institution.About the potential profits of establishing the regional economic integration, more trade welfare, more power to speak, more ability to cope with problems can be gained; about the expectant cost, less difference in level development of economy, stronger cooperate motive can be expected. More potential profits and less expectant in establishing the economic integration in Northeast Asia after the sub-prime crisis shock will completed in a long term.Because of the stability of original system, constantly changing economic facts and national government strategy of variability, my conclusion doesn't mean a breakthrough of economic integration in Northeast Asia in the short period. But the choice of our country about the establishing the economic integration in Northeast Asia after the sub-prime crisis shock is clear: promote the development of economic integration in Northeast Asia. We can obtain more power to speak, more competitive ability, and more ability to cope with uncertainty and risk by joining in the Northeast Asia economic integration.