This thesis aims to study regional economic integration with the emergence of international fragmentaiton of production as a new phenomenon of global economy. The whole thesis consists of three chapters

Chapter 1 creates a new index to evaluate the degree of "de facto" trade liberalization. It concludes that a fundamental arrangement of East Asian regionalism should involve Japan or/and China

Chapter 2 surveys the emergence of International fragmentation of production and the changing pattern of international trade. It shows in diagram how fragmented production can act like technological progress on economic growth, and how the decline of service costs can effectively contribute to the expansion of the global production sharing network

Chapter 3 finds that in East Asia, regional trade liberalization and the enhancement of production sharing can be mutually re-enforced. The progress of institutional integration tends to strengthen the linkage between East Asia and the global economy