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People's Republic of China as an Engine of Growth for Developing Asia?-super-∗

  • Donghyun Park

    (Economics and Research Department Asian Development Bank 6 ADB Avenue Mandaluyong City Metro Manila, Philippines 1550)

  • Kwanho Shin

    (Department of Economics Korea University 5-1 Anam-Dong, Sungbuk-Ku Seoul, Korea 136-701)

Developing Asia has traditionally relied on exports to the United States and other industrialized countries for demand and growth. As a result, the collapse of exports to the United States and other industrialized countries during the 2008–09 global financial crisis has sharply curtailed GDP growth across the region. The emergence of the People's Republic of China (PRC) as a globally influential economic force is fueling hopes that it can supplement the United States as an additional source of demand and growth. The central objective of this paper is to investigate whether exports to the PRC has a significant and positive effect on the GDP of eight developing Asian countries. Although the study's results indicate that exports to the PRC contributed to developing Asian countries' recovery from the global crisis, it is far too early to make well-informed judgments about the PRC's ability to support Asia's growth in the medium and long term. © 2011 The Earth Institute at Columbia University and the Massachusetts Institute of Technology.

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Article provided by MIT Press in its journal Asian Economic Papers.

Volume (Year): 10 (2011)
Issue (Month): 2 (June)
Pages: 120-163

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Handle: RePEc:tpr:asiaec:v:10:y:2011:i:2:p:120-163
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