Implications of the Financial Crisis for Asian Exports
Das, Dilip K. | March 1999
It is widely accepted that rapid export growth is one of the important contributing factors behind the so-called 'Asian eco¬nomic miracle". Several East and Southeast Asian economies including the People's Republic of China (PRC), sustained high ex¬port growth over long periods. Consequently, in 1997, Asia accounted for 20 percent (in US dollar value) of world exports, com¬pared to 5.9 percent in 1970 and 8.6 percent in 1980. These percentages should be seen against the background of the fact that Asia presently accounts for only 5.95 percent of the world gross do¬mestic product (GDP). The long-term trend came to an end in 1996, when export growth rates for several of these economies began to fall. The drop in exports led to fears about the external sector's abil¬ity to fuel economic growth. The decline was precipituous and struck all the high-perform¬ing economies of the region. The average export growth rate for the 11 largest Asian exporters in 1995 was 21.6 percent (Table 1), peak¬ing at 31.4 percent during the first quarter of 1995. Asian export growth had started to decelerate gradually soon thereafter, but this was not widely noticed because the average annual growth rate for 1995 remained high (see Figure 1). In 1996, the market crashed and the export growth rate dropped to 4.3 percent.
CitationDas, Dilip K.. 1999. Implications of the Financial Crisis for Asian Exports. © Asian Development Bank. http://hdl.handle.net/11540/2622. License: CC BY 3.0 IGO.
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