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The Global Economic Crisis and Trade and Growth Prospects in East Asia

Author

Listed:
  • Yılmaz Akyüz

    (South Center)

Abstract

The global economic crisis has revealed that growth in East Asia is highly vulnerable to slowdown in exports to major advanced economies. This paper shows that in precrisis years, at least one-third of growth in the People's Republic of China was due to exports, and this proportion was even higher in most other East Asian economies. In the coming years, the region may not be able to go back to rapid export-led growth because of sluggish growth and high unemployment in advanced economies, and the need to reduce trade imbalances in order to secure global stability and avoid frictions in the trading system. It will be necessary not only to rebalance domestic and external components of demand, but also to embark on industrial restructuring necessitated by a shift from export-led growth to growth led by domestic demand and intraregional trade.

Suggested Citation

  • Yılmaz Akyüz, 2011. "The Global Economic Crisis and Trade and Growth Prospects in East Asia," ADB Economics Working Paper Series 242, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0242
    as

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    References listed on IDEAS

    as
    1. Prema-Chandra Athukorala, 2008. "China's integration into global production networks and its implications for export-led growth strategy in other countries in the region," Departmental Working Papers 2008-04, The Australian National University, Arndt-Corden Department of Economics.
    2. Kei-Mu Yi, 2003. "Can Vertical Specialization Explain the Growth of World Trade?," Journal of Political Economy, University of Chicago Press, vol. 111(1), pages 52-102, February.
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    Keywords

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    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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