An empirical analysis of ASEAN's labor-intensive exports
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.
When requesting a correction, please mention this item's handle: RePEc:eee:asieco:v:21:y:2010:i:6:p:505-513. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If references are entirely missing, you can add them using this form.