Vinod K. Aggarwal and Min Gyo Koo
Northeast Asia, 2008
In recent years, however, the traditional institutional order that has governed economic and security relations in Northeast Asia has come under heavy strain. The geopolitical complexity surrounding the Korean Peninsula and the novel dynamics of Sino-Japanese rivalry with the rise of China are currently shaping a new regional institutional architecture in both economic and security issue areas. In the post-triple shocks period, the increasingly visible erosion of Northeast Asian countries’ confidence in the conventional approach has manifested itself in the proliferation of preferential trade agreements, financial arrangements, and minilateral security dialogues.
This chapter proceeds as follows. Section 1.2 examines Northeast Asian regional trends and provides a systematic categorization of different types of economic and security arrangements. Section 1.3 develops an institutional bargaining game approach to analyze Northeast Asia’s new institutional architecture in trade, finance, and security. Section 1.4 lays out the structure of the book, highlighting the nexus between economics and security. Finally, Sect. 1.5 summarizes the argument and draws policy implications.