Has emerging Asia decoupled? An analysis of production and trade linkages using the Asian international input-output table
AbstractDue 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 InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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:
Contact details of provider:
Postal: Postfach 16 03 19, Frankfurt am Main, Germany
Phone: +49 69 1344 0
Fax: +49 69 1344 6000
Web page: http://www.ecb.europa.eu/home/html/index.en.html
More information through EDIRC
Postal: Press and Information Division, European Central Bank, Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
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)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Kim, Soyoung & Lee, Jong-Wha & Park, Cyn-Young, 2009.
"Emerging Asia: Decoupling or Recoupling,"
Working Papers on Regional Economic Integration
31, Asian Development Bank.
- Hwee Kwan Chow, 2010. "Asian TigersÃ¢â‚¬â„¢ Choices : An Overview," Trade Working Papers 21879, East Asian Bureau of Economic Research.
- Korhonen, Iikka & Fidrmuc , Jarko, 2009.
"The impact of the global financial crisis on business cycles in Asian emerging economies,"
BOFIT Discussion Papers
11/2009, Bank of Finland, Institute for Economies in Transition.
- Fidrmuc, Jarko & Korhonen, Iikka, 2010. "The impact of the global financial crisis on business cycles in Asian emerging economies," Journal of Asian Economics, Elsevier, vol. 21(3), pages 293-303, June.
- Jarko Fidrmuc & Iikka Korhonen, 2009. "The Impact of the Global Financial Crisis on Business Cycles in Asian Emerging Economies," CESifo Working Paper Series 2710, CESifo Group Munich.
- Escaith, Hubert & Gonguet, Fabien, 2009. "International Trade and Real Transmission Channels of Financial Shocks in Globalized Production Networks," MPRA Paper 15558, University Library of Munich, Germany.
- Park, Donghyun & Shin, Kwanho, 2010.
"Can Trade with the People’s Republic of China Be an Engine of Growth for Developing Asia ,"
Asian Development Review,
Asian Development Bank, vol. 27(1), pages 160-181.
- Park, Donghyun & Shin, Kwanho, 2009. "Can Trade with the People’s Republic of China be an Engine of Growth for Developing Asia?," ADB Economics Working Paper Series 172, Asian Development Bank.
- Eleonora Cutrini & Giorgio Galeazzi, 2012. "Can emerging economies decouple from the US business cycle?," Working Papers 41-2012, Macerata University, Department of Studies on Economic Development (DiSSE), revised May 2012.
- 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.
- Christian Dreger & Yanqun Zhang, 2011. "The Chinese Impact on GDP Growth and Inflation in the Industrial Countries," Discussion Papers of DIW Berlin 1151, DIW Berlin, German Institute for Economic Research.
- Sanjay Kalra, 2010. "ASEAN: A Chronicle of Shifting Trade Exposure and Regional Integration," IMF Working Papers 10/119, International Monetary Fund.
- 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.
- Alyson C. Ma & Ari Van Assche, 2012. "Is East Asia’s Economic Fate Chained to the West?," CIRANO Working Papers 2012s-11, CIRANO.
- Robert Koopman & William Powers & Zhi Wang & Shang-Jin Wei, 2011.
"Give Credit where Credit is Due: Tracing Value Added in Global Production Chains,"
312011, Hong Kong Institute for Monetary Research.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Official Publications).
If references are entirely missing, you can add them using this form.