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Decoupling and Sources of Structural Transformation of East Asian Economies: An International Input-Output Decomposition Analysis

Author

Listed:
  • Ko, Jong-Hwan

    (Pukyong National University)

  • Pascha , Werner

    (University of Duisburg-Essen)

Abstract

This study aims to answer two questions using input-output decomposition analysis: 1) Have emerging Asian economies decoupled? 2) What are the sources of structural changes in gross outputs and value-added of emerging Asian economies related to the first question? The main findings of the study are as follows: First, since 1990, there has been a trend of increasing dependence on exports to extra-regions such as G3 and the ROW, indicating no sign of "decoupling", but rather an increasing integration of emerging Asian countries into global trade. Second, there is a contrasting feature in the sources of structural changes between non-China emerging Asia and China. Dependence of non-China emerging Asia on intra-regional trade has increased in line with strengthening economic integration in East Asia, whereas China has disintegrated from the region. Therefore, it can be said that China has contributed to no sign of decoupling of emerging Asia as a whole.

Suggested Citation

  • Ko, Jong-Hwan & Pascha , Werner, 2014. "Decoupling and Sources of Structural Transformation of East Asian Economies: An International Input-Output Decomposition Analysis," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 18(1), pages 55-81, March.
    • Handle: RePEc:ris:eaerev:0047
    DOI: 10.11644/KIEP.JEAI.2014.18.1.275
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    Keywords

    Decoupling of Emerging Asian Economies; Asian International Input-Output Tables; Input-Output Decomposition Analysis; Sources of Structural Changes in Gross Outputs and Value-added;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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