Abstract

Strengthen the professional division of labor, increased economic interdependence within the economies of East Asia to enhance international competitiveness and economic growth, stability, an important foundation. East Asia by analyzing the process of production and consumption and the degree of division of labor within the model can be concluded that: in East Asia, with the most internationally competitive products in the region have significant vertical division of labor; East Asia a lower internal rate of final consumption, the ultimate consumer dependence on the internal market is still far from effective in reducing the level of external shocks. Therefore, to accelerate the advance of the East Asian economic integration has an important significance. Enhancing vertical specialization and heightening economic internalization make great sense for East Asian economies to promote international competitiveness and stability of growth. In this study we analysis the rate of internalization from production to final consumption with respect to the reproduction process within this region, and the pattern of vertical specialization in manufacturing industries. We find that the specialization in manufacturing industries enhance competitiveness, but low-level internal dependence on the regional market weaken the capability to stand against the economic shock from the outside in East Asia.