Has emerging Asia decoupled? An analysis of production and trade linkages using the Asian international input-output table
Abstract
Due to the emergence of global production networks, trade statistics have became less accurate in describing the dependence of emerging Asia on external demand. This paper analyses, using an update of the Asian International Input-Output (AIO) table, the interdependence of emerging Asian countries, the United States, the EU15, and Japan via trade and production linkages. According to the results, we do not find evidence of the decoupling of emerging Asia from the rest of the world. On the contrary, we find evidence on increasing trade integration, both globally and regionally. Nonetheless, our analysis indicates that emerging Asia’s dependence on exports is only about one-third of its GDP, i.e. well below the 50% exposure suggested by trade data. This finding can be explained by the high import content of exports in these economies, which is a result of the increasing segmentation of production across the region. JEL Classification: F14, C67, E23.Download Info
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Paper provided by European Central Bank in its series Working Paper Series with number 993.Length: 42 pages
Date of creation: Jan 2009
Date of revision:
Handle: RePEc:ecb:ecbwps:20090993
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Related research
Keywords: Emerging Asia; Asian International Input-Output table; real linkages; decoupling; resilience.;Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
- E23 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Production
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-17 (All new papers)
- NEP-INT-2009-01-17 (International Trade)
- NEP-OPM-2009-01-17 (Open Economy Macroeconomic)
- NEP-SEA-2009-01-17 (South East Asia)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Kim, Soyoung & Lee, Jong-Wha & Park, Cyn-Young, 2009.
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- Park, Donghyun & Shin, Kwanho, 2009. "The People’s Republic of China as an Engine of Growth for Developing Asia? Evidence from Vector Autoregression Models," ADB Economics Working Paper Series 175, Asian Development Bank.
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- Abdul Abiad & Petia Topalova & Prachi Mishra, 2011. "How Does Trade Evolve in the Aftermath of Financial Crises?," IMF Working Papers 11/3, International Monetary Fund.
- Richard Pomfret, 2009. "Regionalism in the Asia-Pacific Region: How Wide, How Deep?," School of Economics Working Papers 2009-31, University of Adelaide, School of Economics.
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"Give Credit where Credit is Due: Tracing Value Added in Global Production Chains,"
Working Papers
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- Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2010. "Give Credit Where Credit Is Due: Tracing Value Added in Global Production Chains," NBER Working Papers 16426, National Bureau of Economic Research, Inc.
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