Asia’s Role in the New United States Export Economy

31 Pages Posted: 20 Apr 2011

See all articles by William E. James

William E. James

affiliation not provided to SSRN

Shiela F. Camingue

Asian Development Bank - Economic Research

Date Written: February 1, 2011

Abstract

The global economic crisis sent world trade volume and world production into retreat and threatened a second Great Depression. There has emerged a consensus that global imbalances – fundamentally reflected in the over-reliance upon the United States (US) consumer market – that built up over the first decade of the 21st century are no longer sustainable. Deficit regions led by the US will have to increase net exports in real terms in order to restore living standards and employment. Surplus regions, Asia, in particular, will have to rely more upon domestic demand and will have a substantial role to play as growth centers for net imports from the rest of the world. This paper examines the composition and prospects for growth of US net exports to the world and to developing Asia. We find that much of the apparent shift in export product shares was a result of the worldwide collapse in demand for high-technology products particularly new aircraft and information technology products. Nonetheless, India, ASEAN-10, and the newly industrialized economies are destinations for US high-technology products to an even greater extent than for the world as a whole. In contrast, the People’s Republic of China tends to import a lower portion of high-technology products but a larger share of agriculture-related and raw materials and energy products than the world as a whole.

Keywords: Global Economic Crisis, International Trade, US Trade, Real Net Exports, Rebalancing Asia’s Growth, Global Imbalances, Working Paper 250

JEL Classification: F1, F2, L6

Suggested Citation

James, William E. and Camingue, Shiela F., Asia’s Role in the New United States Export Economy (February 1, 2011). Asian Development Bank Economics Working Paper Series No. 250, Available at SSRN: https://ssrn.com/abstract=1814463 or http://dx.doi.org/10.2139/ssrn.1814463

William E. James

affiliation not provided to SSRN ( email )

Shiela F. Camingue (Contact Author)

Asian Development Bank - Economic Research ( email )

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

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