Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges
AbstractThis paper examines the export experience of East Asian economies in the aftermaths of the crisis against the backdrop of a systematic analysis of precrisis trade patterns. The analysis is motivated by the “decoupling” thesis, which was a popular theme in Asian policy circles in the lead-up to the onset of the recent financial crisis, and aims to probe three key issues: Was the East Asian trade integration story that underpinned the decoupling thesis simply a statistical artifact or the massive export contraction caused by an overreaction of traders to the global economic crisis and/or by the drying up of trade credit, which overpowered the cushion provided by intra-regional trade? What are the new policy challenges faced by the East Asian economies? Is there room for an integrated policy response that marks a clear departure from the precrisis policy stance favoring export-oriented growth? The findings serve to caution against a possible costly backlash against openness to foreign trade arising from the newfound enthusiasm for rebalancing growth (redressing the strong bias for exports in development policy), and make a strong case for a well-coordinated strategy to fight new protectionism, as part of a long-term commitment to nondiscriminatory multilateral and unilateral trade liberalization.
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 Asian Development Bank Institute in its series ADBI Working Papers with number 177.
Length: 48 pages
Date of creation: 11 Dec 2009
Date of revision:
Contact details of provider:
Postal: Kasumigaseki Building 8F, 2-5, Kasumigaseki 3-chome, Chiyoda-ku, Tokyo 100-6008
Fax: (81-3) 3593-5571
Web page: http://www.adbi.org/
More information through EDIRC
decoupling; intra-regional trade; growth rebalancing; asia;
Other versions of this item:
- Prema-chandra Athukorala & Archanun Kohpaiboon, 2009. "Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges," Departmental Working Papers 2009-09, The Australian National University, Arndt-Corden Department of Economics.
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- F15 - International Economics - - Trade - - - Economic Integration
- O19 - Economic Development, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
- NEP-INT-2010-05-22 (International Trade)
- NEP-SEA-2010-05-22 (South East Asia)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Fukunari Kimura & Ayako Obashi, 2011.
"Production Networks in East Asia : What We Know So Far,"
Microeconomics Working Papers
23216, East Asian Bureau of Economic Research.
- Fukunari Kimura & Ayako Obashi, 2011. "Production Networks in East Asia : What We Know So Far," Trade Working Papers 23216, East Asian Bureau of Economic Research.
- Kimura, Fukunari & Obashi, Ayako, 2011. "Production Networks in East Asia: What We Know So Far," ADBI Working Papers 320, Asian Development Bank Institute.
- 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.
- Park, Yung Chul, 2011. "The Global Financial Crisis: Decoupling of East Asia—Myth or Reality?," ADBI Working Papers 289, Asian Development Bank Institute.
- Siow Yue Chia, 2010. "Regional Trade Policy Cooperation and Architecture in East Asia," Trade Working Papers 22029, East Asian Bureau of Economic Research.
- Barry Eichengreen, 2009. "The financial crisis and global policy reforms," Proceedings, Federal Reserve Bank of San Francisco.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Robert Hugh Davis).
If references are entirely missing, you can add them using this form.