Intra-Regional Trade in East Asia: The Decoupling Fallacy, Crisis, and Policy Challenges

Premachandra Athukorala, Archanun Kohpaiboon

    Research output: Chapter in Book/Report/Conference proceedingChapter

    Abstract

    This chapter examines the export experience of East Asian economies in the aftermath of the crisis against the backdrop of a systematic analysis of pre-crisis trade patterns. The analysis is motivated by the “decoupling” thesis, which was a popular theme in Asian policy circles in the lead-up to the onset of the recent financial crisis, and aims to probe three key issues: Was the East Asian trade integration story that underpinned the decoupling thesis simply a statistical artefact or the massive export contraction caused by an overreaction of traders to the global economic crisis and/or by the drying up of trade credit, which overpowered the cushion provided by intra-regional trade? What are the new policy challenges faced by the East Asian economies? Is there room for an integrated policy response that marks a clear departure from the pre-crisis policy stance favouring export-oriented growth?
    Original languageEnglish
    Title of host publicationThe Global Financial Crisis and Asia: Implications and Challenges
    Editors Masahiro Kawai, Mario B. Lamberte, and Yung Chul Park
    Place of PublicationUnited Kingdom
    PublisherOxford University Press
    Pages107-123
    Edition1st
    ISBN (Print)9780199660957
    DOIs
    Publication statusPublished - 2012

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