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An empirical analysis of ASEAN's labor-intensive exports

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  • Thorbecke, Willem

Abstract

This paper investigates the factors affecting the demand for ASEAN's labor-intensive exports. Results obtained using a panel data set including exports to 25 countries indicate that an appreciation in ASEAN countries would substantially reduce exports of clothing, furniture, and footwear. In addition, an increase in foreign income and an appreciation among competitors would raise ASEAN's exports. These results indicate that profit margins for labor-intensive manufactures are thin and that slow growth abroad will curtail ASEAN's exports. These findings imply that policymakers should seek to promote domestic and regional demand, expand the technological base, and consider exchange rate coordination to mitigate "beggar-thy-neighbor" policies.

Suggested Citation

  • Thorbecke, Willem, 2010. "An empirical analysis of ASEAN's labor-intensive exports," Journal of Asian Economics, Elsevier, vol. 21(6), pages 505-513, December.
    • Handle: RePEc:eee:asieco:v:21:y:2010:i:6:p:505-513
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    References listed on IDEAS

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    1. Thorbecke, Willem & Lamberte, Mario & Komoto, Ginalyn, 2010. "Promoting Learning and Industrial Upgrading in ASEAN Countries," ADBI Working Papers 250, Asian Development Bank Institute.
    2. Kao, Chihwa, 1999. "Spurious regression and residual-based tests for cointegration in panel data," Journal of Econometrics, Elsevier, vol. 90(1), pages 1-44, May.
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    6. Yin-Wong Cheung & Menzie D. Chinn & Eiji Fujii, 2010. "China's Current Account and Exchange Rate," NBER Chapters, in: China's Growing Role in World Trade, pages 231-271, National Bureau of Economic Research, Inc.
    7. G. S. Maddala & Shaowen Wu, 1999. "A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 631-652, November.
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    11. Thorbecke Willem, 2006. "How Would an Appreciation of the Renminbi Affect the U.S. Trade Deficit with China?," The B.E. Journal of Macroeconomics, De Gruyter, vol. 6(3), pages 1-17, December.
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    Cited by:

    1. Pontines, Victor, 2015. "How useful is an Asian Currency Unit (ACU) index for surveillance in East Asia?," Economic Systems, Elsevier, vol. 39(2), pages 269-287.
    2. Yuming Cui & Changrong Lu, 2018. "Are China's unit labour costs still competitive? A comparison with ASEAN countries," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 32(1), pages 59-76, May.
    3. Thorbecke, Willem, 2018. "Investigating ASEAN’s electronic and labor-Intensive exports," Journal of Asian Economics, Elsevier, vol. 55(C), pages 58-70.
    4. Donatella Baiardi & Carluccio Bianchi & Eleonora Lorenzini, 2014. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," DEM Working Papers Series 074, University of Pavia, Department of Economics and Management.
    5. Baiardi, Donatella & Bianchi, Carluccio & Lorenzini, Eleonora, 2015. "The price and income elasticities of the top clothing exporters: Evidence from a panel data analysis," Journal of Asian Economics, Elsevier, vol. 38(C), pages 14-30.
    6. Willem THORBECKE, 2016. "Investigating the Effect of U.S. Monetary Policy Normalization on the ASEAN-4 Economies," Discussion papers 16070, Research Institute of Economy, Trade and Industry (RIETI).

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    Keywords

    Exchange rate elasticities ASEAN;

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