Rapid development in East Asia, an important event in the 20th century, has caused uncertainty and friction in the world economy, although the benefits to other regions should be substantial as well.

The rapid development of Asian countries has met with mixed reactions among economists. Most economists understand that a genuine development is underway; but, since the process has been a complex one, each has been able to apply favorite explanations to the situation. In Eastern Asia, regional interdependence has been important to developing countries. This work discusses the interaction between the regional economies through trade and foreign direct investment, relating interaction to economic growth and development.