Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128510
Authors: 
Park, Donghyun
Shin, Kwanho
Year of Publication: 
2009
Series/Report no.: 
ADB Economics Working Paper Series 172
Abstract: 
The recession in the United States in the wake of the global financial crisis has had a pronounced negative impact on developing Asia's exports and growth. As a result, developing Asian countries are increasingly looking to the People's Republic of China (PRC) as a new source of demand and growth. The central objective of this paper is to empirically assess whether trade with the PRC can become an engine of growth for developing Asia. To do so, we examine the structure of PRC's trade with developing Asia, in particular the relative shares of parts and components versus final goods in its imports from the region. Our most significant result is that the share of final goods in the PRC's imports from East and Southeast Asia has been rising while the share of parts and components has been falling, suggesting that the PRC is becoming more of a consumer and less of an assembler. This provides ground for optimism about the prospects of trade with the PRC as a source of resilience against extra-regional demand shocks in the short run and an additional source of growth in the long run.
Subjects: 
China
Asia
engine
recovery
growth
trade
production fragmentation
JEL: 
F10
F14
F15
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by/3.0/igo/
Document Type: 
Working Paper

Files in This Item:
File
Size
681.26 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.