Economics and Asia-Pacific Region Territorial and Maritime Disputes: Understanding the Political Limits to Economic Solutions

Abstract

Territorial and maritime disputes are a visible part of the tapestry of Asia-Pacific Region (APR) international relations. They have provoked frictions between states, militarized conflict, and even war. Some believe interstate economic ties or economic inducements have the potential to mitigate and resolve the APR's territorial and maritime controversies. In this article, I analyze, in two primary ways, the potential for economics to calm or resolve the APR's territorial and maritime disputes. One is a theoretical evaluation, while the other is an empirical examination. As for the latter, this article analyzes two specific quarrels: the China-Japan controversy over the East China Sea and Diaoyu/Senkaku Islands and the Japanese-Soviet/Russian conflict over the Northern Territories. In both cases, the economic optimist case is proved wanting. This article shows that researchers must pay attention to political factors, domestic and international, to identify the factors that facilitate/hinder a settlement of territorial and maritime disputes.