Ties Binding Asia, Europe and the USA

Soyoung Kim, Jong Wha Lee, Cyn Young Park

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

We investigate changes in Asia's regional and global trade linkages and their influence on macroeconomic relationships among Asia, Europe and the USA. We first document changes in tripartite trade patterns and discuss stylized facts about East Asia's trade structure, with particular focus on the role of China. China plays a critical role in the rapidly expanding intra-Asian trade as an assembly and production center that supplies final goods for the advanced economies. However, China's trade shares in final goods with East Asia and in parts and components with Europe and the USA are rising, suggesting that the region's production chains are becoming increasingly integrated into the global business network. Empirical results from a panel vector autoregression model generally confirm increasingly mutual macroeconomic interdependence among East Asia, Europe and the USA. The findings suggest a future role for Asia as an important trade partner and balancing power in the world economy.

Original languageEnglish
Pages (from-to)24-46
Number of pages23
JournalChina and World Economy
Volume19
Issue number1
DOIs
Publication statusPublished - 2011 Jan

Keywords

  • East Asia
  • Economic interdependence
  • Panel VAR
  • Trade integration

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

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