Analysis On Response Of Trade Integration Pattern In Emerging Asia To External Shocks In The Context Of Global Imbalance

2008Financial Crisis has brought huge shocks to emerging Asia, which can bemainly reduced to export decline because of external demand shrinks. There is closerelationship between the trade integration pattern and the suffering of external shocks inEast Asia. Based on the “flying geese pattern” and directed by market mechanism, EastAsia has established regional production network which is characterized by verticaldivision of labor. The regional production network has stimulated intraregional trade andincreased regional dependence on external demand. Regional production network hasdelayed the transmission of external shocks but magnified their influence. Because oflack of consumption market and the role of vertically regional production network,emerging Asia has suffered severe shocks in2008Financial Crisis.Export decline and output drop are also observed in emerging Europe in2008Financial Crisis. Different from emerging Asia, emerging Europe has integrated intoEuropean Union. Because of good economic power and great consumption capacity ofadvanced Europe, emerging Europe is faced with huge consumption market withinEuropean Union, and advanced Europe can play a role like cushion in releasing theshocks suffered by emerging Europe. What is more, there are a lot of laws andregulations in European Union, which can provide assistant for trade development ofemerging Europe.Emerging Asia is expected to learn from emerging Europe to develop its trade. First,emerging Asia should enlarge consumption market within the region. Second,institutional aspect is supposed to be taken into consideration.