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Showing papers on "East Asia published in 2004"


Journal ArticleDOI
TL;DR: The looming Southeast Asian biodiversity disaster demands immediate and definitive actions, yet such measures continue to be constrained by socioeconomic factors, including poverty and lack of infrastructure.
Abstract: Southeast Asia has the highest relative rate of deforestation of any major tropical region, and could lose three quarters of its original forests by 2100 and up to 42% of its biodiversity. Here, we report on the current state of its biota and highlight the primary drivers of the threat of extinction now faced by much of the unique and rich fauna and flora of the region. Furthermore, the known impacts on the biodiversity of Southeast Asia are likely to be just the tip of the iceberg, owing to the paucity of research data. The looming Southeast Asian biodiversity disaster demands immediate and definitive actions, yet such measures continue to be constrained by socioeconomic factors, including poverty and lack of infrastructure. Any realistic solution will need to involve a multidisciplinary strategy, including political, socioeconomic and scientific input, in which all major stakeholders (government, non-government, national and international organizations) must participate.

1,381 citations


Journal ArticleDOI
TL;DR: The empirical basis of the neoliberal argument is questioned and the evidence confirms that globalization in the context of the world economic regime in place since the end of Bretton Woods generates more "mutual benefit" than "conflicting interests".

634 citations


Journal ArticleDOI
TL;DR: In this article, the authors examine the dimensions of China's competitive threat in the 1990s, benchmarking competitive performance by technology and market, and find that market share losses are so far mainly in low technology products, with Japan being the most vulnerable market.

359 citations


Journal ArticleDOI
30 Sep 2004-Nature
TL;DR: The findings at Majuangou indicate that the oldest known human presence in northeast Asia at 40° N is only slightly younger than that in western Asia, and implies that a long yet rapid migration from Africa, possibly initiated during a phase of warm climate, enabled early human populations to inhabit northern latitudes of east Asia over a prolonged period.
Abstract: The timing of early human dispersal to Asia is a central issue in the study of human evolution. Excavations in predominantly lacustrine sediments at Majuangou, Nihewan basin, north China, uncovered four layers of indisputable hominin stone tools. Here we report magnetostratigraphic results that constrain the age of the four artefact layers to an interval of nearly 340,000 yr between the Olduvai subchron and the Cobb Mountain event. The lowest layer, about 1.66 million years old (Myr), provides the oldest record of stone-tool processing of animal tissues in east Asia. The highest layer, at about 1.32 Myr, correlates with the stone tool layer at Xiaochangliang1, previously considered the oldest archaeological site in this region. The findings at Majuangou indicate that the oldest known human presence in northeast Asia at 40° N is only slightly younger than that in western Asia2,3. This result implies that a long yet rapid migration from Africa, possibly initiated during a phase of warm climate, enabled early human populations to inhabit northern latitudes of east Asia over a prolonged period.

292 citations


Journal ArticleDOI
TL;DR: In this article, the impact of surface O3 pollution on agricultural production in East Asia has been evaluated using an integrated assessment approach, and the authors concluded that given projected increases in O3 concentrations in the region, East Asian countries are presently on the cusp of substantial reductions in grain production.

290 citations


Journal ArticleDOI
TL;DR: A review of these institutional explanations finds that few if any of the postulated institutional explanations involve either necessary or sufficient conditions for rapid growth as mentioned in this paper, suggesting that institutions are themselves endogenous to other political factors that appear more consequential for growth, including particularly the nature of the relationship between the state and the private sector.
Abstract: Institutions have played a central role in political economy explanations of East Asia’s growth, from the developmental state to the micro-institutions of industrial policy. A review of these institutional explanations finds that few if any of the postulated institutional explanations involve either necessary or sufficient conditions for rapid growth. This finding suggests two conclusions. First, there are multiple institutional means for solving the various collective action, credibility, and informational problems that constitute barriers to growth. The search for a single institutional “taproot” of growth is likely to be a misguided exercise, and more attention should be given to understanding the varieties of capitalism in East Asia. Second, institutions are themselves endogenous to other political factors that appear more consequential for growth, including particularly the nature of the relationship between the state and the private sector.

254 citations


Journal ArticleDOI
TL;DR: In a recent article in International Security entitled " Getting Asia Wrong: The Need for New Analytical Frameworks,” David Kang offers an alternative view that is both timely and provocative.
Abstract: Post–Cold War debates about Asian security have been dominated by Aaron Friedberg’s inouential image of a region seemingly “ripe for rivalry.”1 Friedberg stressed Asia’s lack of stability-enhancing mechanisms of the kind that sustains peace in Europe, such as its high levels of regional economic integration and regional institutions to mitigate and manage conoict. Other pessimists foresaw regional disorder stemming from Asian states’ attempts to balance a rising China. Taken together, such views have shaped a decade of thinking about Asian security in academic and policy circles. Now, in a recent article in International Security entitled “Getting Asia Wrong: The Need for New Analytical Frameworks,” David Kang offers an alternative view that is both timely and provocative. Kang ands that “Asian states do not appear to be balancing against . . . China. Rather they seem to be bandwagoning” (p. 58). He then presents an indigenous Asian tradition that could sustain regional order: the region’s historical acceptance of a “hierarchical” interstate order with China at its core. “Historically,” Kang suggests, “it has been Chinese weakness that has led to chaos in Asia. When China has been strong and stable, order has been preserved. East Asian regional relations have historically been hierarchic, more peaceful, and more stable than those in the West” (p. 66). After faulting Western scholarship for taking an essentially Eurocentric approach to Asian security, Kang calls for bringing international relations theory more in tune with Asian realities. He also asserts that scholars should strive for a better match between their theoretical tools and the evidence on the ground. Taking cognizance of Asia’s different pathway to national sovereignty and regional order, Kang argues, would open the door to new and exciting adWill Asia’s Past Be Its Future?

187 citations


Journal ArticleDOI
TL;DR: The most severe and lasting casualty of the 1997 Asian economic crisis was the East Asian developmental state model itself as mentioned in this paper, which was the most prominent casualty of Asia's economic dynamism.
Abstract: In 1997, several of Asia’s economies collapsed and the international community was called in to help mend the ailing region The crisis attracted a great deal of attention among both the scholarly and policy communities At that time, it seemed that the Asian miracle had come to an abrupt end Places such as South Korea enjoyed a prosperous run though suffered a dubious demise Later developers in Southeast Asia and China, having just emerged from out of the starting gate, quickly stalled in their attempts to ride the wave of Asia’s postwar economic dynamism Fortunately, things would not remain dour for too long Some countries, such as Taiwan and Japan, made it through the crisis relatively unscathed Both China and South Korea quickly rebounded Southeast Asian countries, such as Malaysia, Indonesia, and Thailand, adapted and have consequently begun new growth trajectories In the end, it seemed that the most severe and lasting casualty of the 1997 crisis was the East Asian developmental state model itself 1 To be sure, the more recent literatures on East Asian political economy have taken a sharp turn, wherein terms like “booty capitalism” and “crony capitalism” have quickly come to replace more laudatory titles such as the “East Asian Miracle” 2

179 citations


Journal ArticleDOI
TL;DR: In the past 20 years or so, India, China, and the rest of East Asia experienced fast economic growth and falls in the poverty rate, Latin America stagnated and the former Soviet Union, Central a...
Abstract: Over the past 20 years or so, India, China, and the rest of East Asia experienced fast economic growth and falls in the poverty rate, Latin America stagnated, and the former Soviet Union, Central a...

169 citations


MonographDOI
TL;DR: This article examined the effects of the changing global geography of production for the growth prospects of East Asian economies and concluded that in the face of a global environment, economies in East Asia need to adapt to the changing character of global production networks and to nurture and develop technological capabilities in order to sustain their growth prospects.
Abstract: This book examines the effects of the changing global geography of production for the growth prospects of East Asian economies. The authors conclude that in the face of a global environment, economies in East Asia need to adapt to the changing character of global production networks and to nurture and develop technological capabilities in order to sustain their growth prospects. This is the third volume in a series of publications from a study co-sponsored by the Government of Japan and the World Bank to examine the sources of economic growth in East Asia. The study was initiated in 1999 with the objective of identifying the most promising path to development in the light of global and regional changes.

140 citations


Book ChapterDOI
01 Nov 2004

Posted Content
TL;DR: In this article, the authors present a critical study of the flying geese paradigm, as well as its application to the current situation in East Asia economic hierarchy and identify major theoretical, conceptual and empirical problems that come with it.
Abstract: It is often claimed that what is popularly known as the "flying geese paradigm" of dynamic comparative advantage has accurately depicted the East Asian catching-up process. This paper presents a critical study of the paradigm, as well as its application to the current situation in East Asia economic hierarchy. The paper first presents the various versions of the paradigm, and discusses similarities and differences among them. It then evaluates the application of the paradigm to the East Asian regional development context by identifying major theoretical, conceptual and empirical problems that come with it. It is the author's hope that the arguments presented in this paper will contribute to the further enrichment of future discussions on the East Asian development experience.

Journal ArticleDOI
TL;DR: Wang et al. as mentioned in this paper investigated the variability of climate and agricultural production in China in association with the East Asian summer monsoon (EASM) and ENSO.
Abstract: The East Asian monsoon (EAM) and the El Nino Southern Oscillation (ENSO) determine climate variability over much of East Asia, affecting vulnerable grain markets and food security in China. In this study, we investigated the variability of climate and of agricultural production in China in association with the East Asian summer monsoon (EASM) and ENSO. Data from China showed that a strong EASM decreased fall temperature in Gansu and Sichuan Provinces in western China, as well as winter temperature in Heilongjiang Province in NE China and in Shandong and Anhui Provinces in eastern China. Summer rainfall in Hunan Province in southern China increased in weak EASM years. Summer temperature increased in Heilongjiang in NE China and Gansu Province in NW China during the La Nina phase. Summer rainfall decreased in Gansu Province in NW China during the El Nino phase. Among staple crops in China (rice, wheat, maize), maize production was very vulnerable to a strong EASM and El Nino phase. In Henan Province in central China, seasonal climate variability associated with EASM and ENSO resulted in about 14.4 and 15.6%, respectively, of maize yield variability. Maize yield at the national scale decreased significantly by 5.2% during the El Nino phase. Cropland area affected and damaged by floods in Hunan Province in southern China increased significantly by 11.3 and 8.5%, respectively, in weak monsoon years. During the La Nina phase, total crop planting area increased significantly in Shandong, Henan and Anhui Provinces in central China, and in Heilongjiang Province in NE China; however, it decreased significantly in Sichuan Province in SW China. The large variability in seasonal climate and agricultural production in association with EASM and ENSO warrant applying EASM and ENSO information to agricultural and food market management.

Book
01 Mar 2004
TL;DR: The main characteristics of Chinese economic growth over the last two decades, and investigates in detail the key determinants of growth, especially capital formation and productivity issues, are discussed in this article.
Abstract: The current growth of the Chinese economy is of immense importance for the global economy. This book outlines the main characteristics of Chinese economic growth over the last two decades, and investigates in detail the key determinants of growth, especially capital formation and productivity issues. It goes on to examine the important related questions of employment and underemployment, regional disparity, and economic integration, exploring in detail how far economic integration has taken place in south China, including the economies of Hong Kong and Taiwan, and how far this integration has been a determinant of economic growth. The book makes comparisons with other East Asian economies, and concludes with a consideration of the prospects for continuing growth in the twenty-first century.

Journal ArticleDOI
TL;DR: In this paper, the structural vector autoregression (VAR) method is employed to identify the underlying shocks using a three-variable VAR model across the East Asian economies.
Abstract: The empirical suitability of the East Asian economies for potential monetary integration is assessed. The structural vector autoregression (VAR) method is employed to identify the underlying shocks using a three-variable VAR model across the East Asian economies. The estimates of the EEC are used as a benchmark to compare the size of the underlying shocks and the speed of adjustment to shocks in both regions to determine the feasibility of forming an optimum currency area (OCA) in East Asia. The empirical results do not display strong support for forming an OCA in the East Asian region. The results do imply, however, that some small subregions are potential candidates for OCAs, since their disturbances are correlated and small and these economies adjust rapidly to shocks.

Journal ArticleDOI
TL;DR: For half a century East Asian regional order has been built around the mutual strategic embrace of America and its Asian partners as mentioned in this paper, and the region has undergone dramatic transformation over the decades.
Abstract: For half a century East Asian regional order has been built around the mutual strategic embrace of America and its Asian partners. The region has undergone dramatic transformation over the decades ...

Journal ArticleDOI
TL;DR: In this article, the authors provide a broad outline of emerging trends and issues revolving around contemporary cross-border labour migration and the politics of migrants' rights in South-East and East Asia, illustrated by the difficulties experienced with the ratification of the 1990 United Nations Convention on the Rights of All Migrants and their Families (ICMR).
Abstract: The issue of cross-border migration in South-East and East Asia is linked to the integration of regional, if not global, labour markets. The types of labour that are currently in demand have changed substantially since the 1990s in terms of (1) overall magnitude, (2) gender composition, and (3) increased diversification. This paper, however, focuses upon those workers classified as unskilled as they constitute numerically the largest and most vulnerable group. The challenges to provide adequate protection from, and prevention of, exploitative and abusive practices that seriously minimize the socio-economic benefits for these workers are linked to migration policies and the issue of rights in the origin and destination countries. This paper's objective is to provide a broad outline of the emerging trends and issues revolving around contemporary cross-border labour migration and the politics of migrants' rights in South-East and East Asia, illustrated by the difficulties experienced with the ratification of the 1990 United Nations Convention on the Rights of All Migrants and their Families (ICMR). The data this paper is based upon were collected for a report commissioned by the United Nations Educational, Scientific and Cultural Organization (UNESCO) with fieldwork carried out in seven countries located in the Asia Pacific region. It is argued that ratification of the ICMR is obstructed by politics and by a lack of political will. A rights-based approach to the protection of migrant labour is thus related to a number of macro and micro level issues, revolving around development and practices of “good governance” in addition to interstate relations. This means that the promotion of migrants' rights requires a holistic approach addressing national and transnational issues in an era of increasing mobility across borders.

Posted Content
TL;DR: Using very detailed historical trade data, Wang et al. as discussed by the authors combine econometric and trade flow analysis to elucidate patterns of export competition and underlying comparative advantage for ASEAN and China.
Abstract: Rivalry in trade between China and its regional neighbours in ASEAN has become a major preoccupation for many regional policy-makers. For these reasons, strengthening the basis of empirical evidence on regional trade relations is especially important, and this paper does so in two ways. Using very detailed historical trade data, we combine econometric and trade flow analysis to elucidate patterns of export competition and underlying comparative advantage for ASEAN and China. Our findings indicate that the potential exists for both export rivalry and more extensive trade complementarity, but so do many challenges for policy makers who seek to mitigate adjustment costs and facilitate long term efficiency. Our econometric results indicate that, in the short run at least, ASEAN and China are experiencing intensified export competition in prominent third markets such as Japan and the US. More extensive trade flow analysis reveals, however, that in the long run globalisation can accommodate export growth by all the economies of East Asia, if aggregate growth can be sustained to facilitate the structural adjustments necessary for an optimal regional division of labour.

Book
24 Feb 2004
TL;DR: In this paper, a Frontier View of Chineseness and the East Asian Path of Economic Development: A long-term perspective is presented. But the authors focus on women's work, family and economic development in Europe and East Asia: longterm trajectories and contemporary comparisons.
Abstract: 1. Tribute and Treaties: Maritime Asia and treaty port networks in the era of negotiation, 1800-1900 2. A Frontier View of Chineseness 3. The East Asian Path of Economic Development: A long-term perspective 4. Women's Work, Family and Economic Development in Europe and East Asia: Long-term trajectories and contemporary comparisons 5. The Importance of Commerce in the Organization of China's Late Imperial Economy 6. Japan, Technology and Asian Regionalism in Comparative Perspective 7. Historical Capitalism, East and West

Journal ArticleDOI
TL;DR: The authors examines how institutions, particularly those related to the regulatory environment and culture of East Asia, shape the venture capital industry and create differences from the Venture capital industry in the West, and concludes with a research agenda for building a fuller understanding of how venture capital works in East Asia and what outside investors and firms need to familiarize themselves with.

24 Sep 2004
TL;DR: The authors summarizes the debate on East Asian industrial policy and summarizes the main lines of discussion and their evolution, and makes sense of what is relevant to the challenges currently faced by developing countries.
Abstract: One of the most debated questions in the development literature is the role of government intervention in East Asia. This paper summarizes the debate on East Asian industrial policy. Due to the wealth of literature on this topic, this paper does not attempt to exhaustively evaluate every intervention, but to describe the main lines of discussion and their evolution. The goal is to make sense of what is relevant to the challenges currently faced by developing countries.


Book
01 Jan 2004
TL;DR: Lincke et al. as mentioned in this paper argued that an exclusively Asian form of regionalism could run counter to American economic interests, and the U.S. government has reacted negatively to some of these proposals in the past.
Abstract: Something new is happening across East Asia. A region notable for its lack of internal economic links is discussing regional cooperation on trade, investment, and exchange rates. Because of negotiations elsewhere around the globe on regional trade --such as those that led to the consolidation of the European Union, the formation of the North American Free Trade Area, and the rapid proliferation of bilateral free trade areas --the talk is not surprising. Nevertheless, East Asia's past inertia with regard to forming a regional partnership raises many questions about its emerging regionalism. Why has the region suddenly shifted from taking a global approach to economic issues to discussing a regional bloc? How fast and how far will the new regionalism progress? Will the region become a version of the European Union, or something far less? What is the probable impact on American economic and strategic interests --are the likely developments something that the U.S. government should encourage or discourage? Edward Lincoln takes up these questions, exploring what is happening to regional trade and investment flows and what sort of regional arrangements are the most sensible. Lincoln argues that an exclusive grouping is unlikely. Free trade negotiations have brought some economies in the region together, but they also have led to links with nations outside the region. Some regional governments most notably Japan, continue to have difficulty embracing the concept of free trade, even with favored regional partners. In the wake of the Asian financial crisis, governments also have looked at cooperating on exchange rates, but they have done little to move forward. The U.S. government must decide how to respond to these developments in East Asia. An exclusively Asian form of regionalism could run counter to American economic interests, and the U.S. government has reacted negatively to some of these proposals in the past. Because trade and investment links between the countries of the Asia Pacific region and the United States remain very strong, Lincoln argues that the Asia Pacific Economic Cooperation forum remains the appropriate institution for pursuing regional trade and investment issues.

Posted Content
TL;DR: A selective survey of the recent empirical literature on financial integration, the focus being on alternative definitions of financial integration and measurement issues and results is presented in this article, focusing on the ASEAN?5 plus 3 or APT economic group (i.e., Indonesia, Thailand, Malaysia, Philippines, Singapore, Korea, China and Japan) as well as Hong Kong and Chinese Taipei.
Abstract: This paper offers a selective survey of the recent empirical literature on financial integration, the focus being on alternative definitions of financial integration and measurement issues and results. The literatures to be reviewed have been selected primarily because their analyses have included some East Asian economies. In particular, this study concentrates on the ASEAN?5 plus 3 or APT economic group (i.e. Indonesia, Thailand, Malaysia, Philippines, Singapore, Korea, China and Japan) as well as Hong Kong and Chinese Taipei. These are the economies that have consciously attempted to intensify intraregional monetary and financial cooperation in the last few years, particularly since the East Asian crisis of 1997-98.

Journal ArticleDOI
TL;DR: In this paper, an exploratory study was designed to measure the marketing effectiveness of national tourism organizations (NTOs) in the East Asia region and identify their Internet marketing strengths and weaknesses.
Abstract: Despite the increasing importance of the Internet as a marketing tool among national tourism organizations (NTOs) and the importance of tourism in the East Asia region, relatively few studies have been done on measuring the marketing effectiveness of NTO Websites and this exploratory study was designed to fill this gap. It included an extensive content analysis to compare NTO Websites in the East Asia region and identify their Internet marketing strengths and weaknesses. The results indicated that all of the NTOs in the East Asia region were not fully utilizing their Websites. In particular, among the four groups of criteria evaluated, it was found that East Asian NTOs were not very effective in using their Websites in the marketing role. The results of the study delivered a significant message for the NTOs in East Asia.

Journal ArticleDOI
TL;DR: In the absence of an Asian euro, however, the only feasible way of achieving this mutual exchange stability is for East Asian governments individually to peg the region's dominant key currency: the U.S. dollar as mentioned in this paper.

Book
01 Jan 2004
TL;DR: In this article, the authors make a case for a new theoretical approach (called "analytical eclecticism" by the authors) to the study of Asian security, with specific reference to China, Japan, Korea, and Southeast Asia.
Abstract: Is East Asia heading toward war? Throughout the 1990s, conventional wisdom among U.S. scholars of international relations held that institutionalized cooperation in Europe fosters peace, while its absence from East Asia portends conflict. Developments in Europe and Asia in the 1990s contradict the conventional wisdom without discrediting it. Explanations that derive from only one paradigm or research program have shortcomings beyond their inability to recognize important empirical anomalies. International relations research is better served by combining explanatory approaches from different research traditions. This book makes a case for a new theoretical approach (called "analytical eclecticism" by the authors) to the study of Asian security. It informs the analysis in subsequent chapters of central topics in East Asian security, with specific reference to China, Japan, Korea, and Southeast Asia. The authors conclude that the prospects for peace in East Asia look less dire than conventional - in many cases Eurocentric - theories of international relations suggest. At the same time, they point to a number of potentially destabilizing political developments.

Journal ArticleDOI
TL;DR: In this article, the authors synthesize detailed trade flow and econometric analysis to show that ASEAN and China are experiencing intensified export competition in prominent third markets such as Japan and the US.
Abstract: HINA’S initial opening to the world economy in the late 1980s followed by its relatively rapid trade liberalisation in the second half of the 1990s and its recent WTO accession has prompted extensive debate amongst the policy community in many countries. 1� Governments of the ASEAN group in particular have been extremely concerned at the prospect of FDI diversion and the loss of export market share in OECD economies to China. This paper summarises detailed empirical research by the authors intended to strengthen the basis of evidence on the important issue of export rivalry. In particular, we seek to elucidate the underlying properties of comparative advantage and export competition in the countries concerned, synthesising detailed trade flow and econometric analysis. Our econometric results indicate that, in the short run at least, ASEAN and China are experiencing intensified export competition in prominent third markets such as Japan and the US. More extensive trade flow analysis reveals, however, that in the long run globalisation can accommodate export growth by all the economies of East Asia, if aggregate growth can be sustained to facilitate the structural adjustments necessary for an optimal regional division of labour. More specifically, the path forward is not without potential rivalry, but wellinformed policy makers can anticipate emergent challenges and take the steps necessary to mitigate adjustment costs and promote longer-term efficiency. Whatever the ultimate course of development in East Asia, it is clear that the forces at work are complex and in many cases unprecedented. Policy makers relying on

Journal ArticleDOI
TL;DR: In this article, the authors investigated the impacts of land cover changes on the systematic biases of the National Center for Atmospheric Research Regional Climate Model (NCAR RegCM2) through the 10-year east Asian summer simulations.
Abstract: [1] Systematic biases were found in the National Center for Atmospheric Research Regional Climate Model (NCAR RegCM2) through the 10-year east Asian summer simulations. In the simulations, positive and negative surface temperature biases of 2°–4°C occurred systematically over north China and Mongolia. The model also produced excessive precipitation over land but less precipitation over the southern ocean of the model domain. In this study, impacts of land cover changes (LCC) on the systematic biases were investigated through the cool/wet and warm/dry summer climate simulations using two types of land cover maps using RegCM2. One type was an NCAR land cover map, and the other was a current land cover map derived from satellite data. Simulated latent heat flux and wind speed increased noticeably over central and north China, where deciduous broad leaf trees have been replaced by mixed farm and irrigated crop. As a result, the systematic positive biases over central and north China were greatly reduced regardless of climate regimes. Cooling in central and north China resulted in a pressure gradient decrease between the east Asian continent and the Pacific Ocean. The decrease in pressure gradient suppressed northward transport of moisture from south China and the South China Sea. The change reduced not only excessive precipitation over north China and Mongolia but also less precipitation over south China. However, in LCC, precipitation increased in the Korean Peninsula and the Japan Islands, in particular, during July and August. As a result, LCC resulted in cooler and drier summer climate over north China, but cooler and wetter summer climate over the Korean Peninsula and the Japan Islands irrespective of climate regimes. In general, the impacts of LCC were relatively significant in the warm and dry summer.

Journal ArticleDOI
TL;DR: In this paper, a preliminary attempt to illustrate how apparel industries in Asian NIC can obtain competitive advantage in the global economy and to suggest their future direction and challenges by synthesizing industry-specific and Asian NIC-specific advantages.
Abstract: The East Asian newly industrialized countries (from now on, Asian NIC) of Hong Kong, South Korea, and Taiwan have experienced decreasing export competitiveness due to rise of labor costs While cheap labor has been the main source of competitiveness of Asian NIC, it cannot be a viable factor for Asian NIC any more As the industry sector develops, its competitive advantage factors should be changed accordingly This study is a preliminary attempt to illustrate how apparel industries in Asian NIC can obtain competitive advantage in the global economy and to suggest their future direction and challenges By synthesizing industry‐specific and Asian NIC‐specific advantages, this study presents three critical factors for Asian NIC: global brand, global sourcing, and agility Future directions and challenges for the industries are suggested