Regional Economic Integration - Essay Example

Running head: REGIONAL ECONOMIC INTEGRATION Regional Economic Integration Autor’s al Affiliations REGIONAL ECONOMIC INTEGRATION Abstract The regional economic integration of such Asian countries as Philippines, Taiwan, Malaysia, and Indonesia was studied in the context of a visual research task. The GDP by economic sectors of the Philippines is 14, 9% of agriculture, 29, 1% - industry and 51, 1% - service sector (2009 est.). The GDP of Taiwan is 3 % of agriculture, 35% - industry and 73% of a service sector.

In the industrial economic sector Malaysian GDP is 42, 3%, in agricultural sector the GDP is 10, 1% and in service sector – 47, 6% (2009 est.). Indonesian economy is rapidly developing; it is the largest economy of South Asia nowadays. The country’s GDP is 14, 4% in agricultural sector, 48, 1% - industry, and service sector is 37, 5% (according to 2009 data). All the countries mentioned above appear to be competing as they produce and export similar goods. At the given time period these Asian countries’ economy is attractive for foreign investors.

Still, the business in tourism and oil refining branch remain the most profitable and prosperous nowadays, thus this fact makes these branches interesting to the potential investors. As for Taiwan economy, financial sector is also worth to invest in. Key words: regional economic integration, the GDP, economic sector, competition, foreign investment. The Asian countries keep their economic development. The economic miracle known as “the leap of Asian tigers”, unfortunately, affected not all Asian countries.

Though the economy of these countries is rapidly developing, according to the experts’ assessments, 16, 3 per cent of people still remain below poverty line. The Philippine economy is a combination of agriculture (24, 9%), light industry (29, 1%) and the sector of related services (51, 1%). “Despite enjoying sustained economic growth during the first decade of the 21st century, as of 2010, the country's economy remains smaller than those of its Southeast Asian neighbors Indonesia and Malaysia in terms of GDP and GDP per capita” (International Monetary Fund, World Economic Outlook Database, 2010).

As for Malaysia, this country is also agro-industrial. It should be mentioned that the main economic achievement of the country is a rapid development of industry, especially those sectors working for export. In 2009, the GDP by sectors was as following: agriculture – 10, 1%, industry – 42, 3%, services – 47, 6%). Taiwan is a country with a dynamic capitalist economy. Due to conservative financial policies conducted by government and corporate strategy, now Taiwan is a highly developed Asian country, one of the “Four Asian Tigers” (The Economist, 2004).

The GDP of Taiwan by economic sectors: agriculture is 3%, 35% - industry and 73% is service sector. The Economy of Indonesia is the largest economy in Southeast Asia. Agriculture contribute 14, 4% to Indonesian GDP, industry makes up 48, 1 of its GDP and service sector – 37, 5. If to speak about the competition between these Asian countries, it should be noted that this phenomenon is an inevitable process. Due to the geographical proximity of these countries, its similar history, culture and lifestyle, the Philippines, Malaysia, Taiwan and Indonesia produce, as well as import, similar goods.

Industry (largely light) of most mentioned above countries makes up the major part of annual GDP; the same can be said about service sector. All these countries are world market’s leaders in oil and gas manufacturing, as well as in Tourist Business. In my opinion, Tourist Business in most of Asian countries really lacks support from foreign investors. Taking into account their favorable geographical position and potential tourists’ craving to Asian exotic culture, I consider this business as very profitable and worth of my investment.

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Infernalramblings.com.retrieved from http://www.infernalramblings.com/articles/Malaysian_Economy/436/ 5. Soesastro, H. n.d. Lessons and Challanges for Governance and sustainable Development. Retrieved from http://www.pacific.net.id/pakar/hadisusastro/economic_2.html. 6. The Real Great Leap Forward. The Economist. Sept 30, 2004. Retrieved from http://www.economist.com/node/3219418?story_id=E1_PNTJQTR