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An empirical analysis of ASEAN's labor-intensive exports

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  • Thorbecke, Willem

Abstract

This paper investigates the factors affecting the demand for ASEAN's labor-intensive exports. Results obtained using a panel data set including exports to 25 countries indicate that an appreciation in ASEAN countries would substantially reduce exports of clothing, furniture, and footwear. In addition, an increase in foreign income and an appreciation among competitors would raise ASEAN's exports. These results indicate that profit margins for labor-intensive manufactures are thin and that slow growth abroad will curtail ASEAN's exports. These findings imply that policymakers should seek to promote domestic and regional demand, expand the technological base, and consider exchange rate coordination to mitigate "beggar-thy-neighbor" policies.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Asian Economics.

Volume (Year): 21 (2010)
Issue (Month): 6 (December)
Pages: 505-513

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Handle: RePEc:eee:asieco:v:21:y:2010:i:6:p:505-513

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Web page: http://www.elsevier.com/locate/asieco

Related research

Keywords: Exchange rate elasticities ASEAN;

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Cited by:
  1. Victor Pontines, 2013. "How Useful Is an Asian Currency Unit (ACU) Index for Surveillance in East Asia?," Governance Working Papers 23398, East Asian Bureau of Economic Research.
  2. Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2014. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," DEM Working Papers Series 074, University of Pavia, Department of Economics and Management.

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