IDEAS home Printed from https://ideas.repec.org/p/ris/adbiwp/0294.html
   My bibliography  Save this paper

Global Financial and Economic Crisis: Implications for Trade and Industrial Restructuring in South Asia

Author

Listed:
  • Prabir De

    (Asian Development Bank Institute)

  • Chiranjib Neogi

    (Asian Development Bank Institute)

Abstract

This study investigates the impact of global crisis shocks on India's trade and industry. The authors use panel data modeling and vector autoregression techniques to understand the dynamic effects of global crisis shocks on Indian industry and trade. Changes in trade composition are positively associated with changes in manufacturing composition in India, controlling for other variables. However, there is no strong indication that Indian industry has been severely harmed by the fall in demand in crisis-affected advanced economies such as the United States, the European Union, and Japan, holding other things constant.

Suggested Citation

  • Prabir De & Chiranjib Neogi, 2011. "Global Financial and Economic Crisis: Implications for Trade and Industrial Restructuring in South Asia," ADBI Working Papers 294, Asian Development Bank Institute.
    • Handle: RePEc:ris:adbiwp:0294
    as

    Download full text from publisher

    File URL: http://www.adbi.org/files/2011.07.08.wp294.gfec.implications.trade.industrial.south.asia.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Adams , Charles & Park, Donghyun, 2009. "Causes and Consequences of Global Imbalances: Perspective from Developing Asia," Asian Development Review, Asian Development Bank, vol. 26(1), pages 19-47.
    2. Barry Bosworth & Aaron Flaaen, 2009. "America's Financial Crisis: The End of an Era," ADBI Working Papers 142, Asian Development Bank Institute.
    3. World Bank, 2010. "World Bank South Asia Economic Update 2010 : Moving Up, Looking East," World Bank Publications - Books, The World Bank Group, number 2504, April.
    4. World Bank, 2009. "World Development Indicators 2009," World Bank Publications - Books, The World Bank Group, number 4367, April.
    5. Prabir De, 2009. "Global economic and financial crisis: India’s trade potential and future prospects," Working Papers 6409, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    6. Ito, Takatoshi & Krueger, Anne O. (ed.), 2000. "The Role of Foreign Direct Investment in East Asian Economic Development," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226386751.
    7. Sims, Christopher A, 1980. "Macroeconomics and Reality," Econometrica, Econometric Society, vol. 48(1), pages 1-48, January.
    8. Takatoshi Ito & Anne O. Krueger, 2000. "The Role of Foreign Direct Investment in East Asian Economic Development," NBER Books, National Bureau of Economic Research, Inc, number ito_00-2, October.
    9. Masahiro Kawai & Shinji Takagi, 2011. "Why Was Japan Hit So Hard by the Global Financial Crisis?," Chapters, in: Daigee Shaw & Bih Jane Liu (ed.), The Impact of the Economic Crisis on East Asia, chapter 7, Edward Elgar Publishing.
    10. Bhagwati, Jagdish N, 1988. "Export-Promoting Trade Strategy: Issues and Evidence," The World Bank Research Observer, World Bank, vol. 3(1), pages 27-57, January.
    11. Kawai, Masahiro & Zhai, Fan, 2009. "China-Japan-United States integration amid global rebalancing: A computable general equilibrium analysis," Journal of Asian Economics, Elsevier, vol. 20(6), pages 688-699, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chishti, Muhammad Zubair & Xia, Xiqiang & Dogan, Eyup, 2024. "Understanding the effects of artificial intelligence on energy transition: The moderating role of Paris Agreement," Energy Economics, Elsevier, vol. 131(C).
    2. Ghamz-e-Ali Siyal & Asma Mohsin & Khalid Zaman, 2014. "Financial Soundness and Pakistan’s Economics Growth: Turn on the Light," International Journal of Economics and Empirical Research (IJEER), The Economics and Social Development Organization (TESDO), vol. 2(9), pages 359-371, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prabir De & Chiranjib Neogi, 2010. "Global Financial Crisis : Implications for Trade and Industrial Restructuring in India," Trade Working Papers 23067, East Asian Bureau of Economic Research.
    2. Elissa Braunstein & Gerald Epstein, 2002. "Bargaining Power and Foreign Direct Investment in China: Can 1.3 Billion Consumers Tame the Multinationals?," SCEPA working paper series. 2002-13, Schwartz Center for Economic Policy Analysis (SCEPA), The New School.
    3. Todo, Yasuyuki & Miyamoto, Koji, 2006. "Knowledge Spillovers from Foreign Direct Investment and the Role of Local R&D Activities: Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 173-200, October.
    4. Takatoshi Ito, 2000. "Capital Flows in Asia," NBER Chapters, in: Capital Flows and the Emerging Economies: Theory, Evidence, and Controversies, pages 255-296, National Bureau of Economic Research, Inc.
    5. Gao, Ting, 2005. "Foreign direct investment from developing Asia: some distinctive features," Economics Letters, Elsevier, vol. 86(1), pages 29-35, January.
    6. Ergun Dogan & Koi Nyen Wong, 2020. "Sources and Channels of International Knowledge Spillovers in ASEAN‐5: The Role of Institutional Quality," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(4), pages 470-486, May.
    7. repec:ilo:ilowps:417617 is not listed on IDEAS
    8. Lin, Mi & Kwan, Yum K., 2016. "FDI technology spillovers, geography, and spatial diffusion," International Review of Economics & Finance, Elsevier, vol. 43(C), pages 257-274.
    9. repec:elg:eechap:14395_19 is not listed on IDEAS
    10. Todo Yasuyuki, 2005. "Technology Adoption in Follower Countries: With or Without Local R&D Activities?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 5(1), pages 1-32, February.
    11. Shang-Jin Wei & Yi Wu, 2002. "Negative Alchemy? Corruption, Composition of Capital Flows, and Currency Crises," NBER Chapters, in: Preventing Currency Crises in Emerging Markets, pages 461-506, National Bureau of Economic Research, Inc.
    12. Nishitateno, Shuhei, 2013. "Global production sharing and the FDI–trade nexus: New evidence from the Japanese automobile industry," Journal of the Japanese and International Economies, Elsevier, vol. 27(C), pages 64-80.
    13. Laixiang Sun & In Hyeock Lee & Eunsuk Hong, 2017. "Does foreign direct investment stimulate new firm creation? In search of spillovers through industrial and geographical linkages," Small Business Economics, Springer, vol. 48(3), pages 613-631, March.
    14. John Fernald & Brent Neiman, 2011. "Growth Accounting with Misallocation: Or, Doing Less with More in Singapore," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(2), pages 29-74, April.
    15. Todo, Yasuyuki & Miyamoto, Koji, 2006. "Knowledge Spillovers from Foreign Direct Investment and the Role of Local R&D Activities: Evidence from Indonesia," Economic Development and Cultural Change, University of Chicago Press, vol. 55(1), pages 173-200, October.
    16. Sunyoung Noh & Jai S. Mah, 2011. "The Patterns of Japan’s Foreign Direct Investment in China," China Report, , vol. 47(3), pages 217-232, August.
    17. De Groot, Olaf, 2014. "Foreign direct investment and welfare," Desarrollo Productivo 37137, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    18. Moran, Theodore H., 2008. "A perspective from the MNE Declaration to the present : mistakes, surprises, and newly important policy implications," ILO Working Papers 994176173402676, International Labour Organization.
    19. Homi Kharas & Indermit Gill, 2007. "An East Asian Renaissance : Ideas for Economic Growth," World Bank Publications - Books, The World Bank Group, number 6798, April.
    20. Robert E. Lipsey, 2001. "Foreign Direct Investors in Three Financial Crises," NBER Working Papers 8084, National Bureau of Economic Research, Inc.
    21. Merlevede, Bruno & Schoors, Koen & Spatareanu, Mariana, 2014. "FDI Spillovers and Time since Foreign Entry," World Development, Elsevier, vol. 56(C), pages 108-126.
    22. Minsoo Lee & MoonJoong Tcha, 2004. "The color of money: The effects of foreign direct investment on economic growth in transition economies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 140(2), pages 211-229, June.

    More about this item

    Keywords

    india trade industry; indian industry; india manufacturing sector; india external trade; global econ;
    All these keywords.

    JEL classification:

    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • L70 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:adbiwp:0294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ADB Institute (email available below). General contact details of provider: https://edirc.repec.org/data/adbinjp.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.