This paper predicts that with political and military conflict settled and barriers to trade and investment lowered, trade with Northeast Asia nations will increase. The linear free trade area theory used in this paper illustrates conditions and prospects of economic cooperation in Northeast Asia.
The liberalization of transactions of production factors and intermediates facilitated by a free trade area would contribute to the development of industry and resources for developing nations, accelerate the high growth of industry and secure resources procurement and markets for capital goods from developed economies.