Chapter

Intra-Regional Trade in East Asia

Prema-Chandra Athukorala and Archanun Kohpaiboon

in The Global Financial Crisis and Asia

Published in print October 2012 | ISBN: 9780199660957
Published online January 2013 | e-ISBN: 9780191748981 | DOI: http://dx.doi.org/10.1093/acprof:oso/9780199660957.003.0005
Intra-Regional Trade in East Asia

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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?

Keywords: financial crisis; decoupling; policy response; trade integration; export-oriented growth

Chapter.  6836 words.  Illustrated.

Subjects: Financial Markets

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