Asian Trade and Global Linkages. Asian Development Review, Vol. 26(1), pp. 103-130
Brooks, Douglas H.; Hua, Changchun | March 2009
Abstract
In the run-up to the 2008 global financial crisis, many thought that Asia
would be exempt from economic shocks from Europe or North America.
These arguments were largely based on the rapid expansion of intraregional
trade in Asia. This paper examines the trade linkages among Asian countries
and between Asia and other regions, paying particular attention to the role of
production sharing processes diversified across geographically diffuse
networks. Little or no evidence is found of Asia decoupling from the business
cycles of the G-3 economies (United States, European Union, and Japan).
Instead, there is a substantial linkage between growth in the G-3 and Asia,
particularly since the 1997–1998 Asian financial crisis, because production
networks in Asia expanded in response to G-3 demand for final products. The
critical factor is the role of the People’s Republic of China as an assembly
center in the vertical production integration.
Citation
Brooks, Douglas H.; Hua, Changchun. 2009. Asian Trade and Global Linkages. Asian Development Review, Vol. 26(1), pp. 103-130. © Asian Development Bank. http://hdl.handle.net/11540/1683. License: CC BY 3.0 IGO.Citable URI
http://hdl.handle.net/11540/1683Metadata
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