IDEAS home Printed from https://ideas.repec.org/a/sae/emeeco/v1y2009i2p159-239.html
   My bibliography  Save this article

The Impact of the Global Economic Slowdown on South Asia

Author

Listed:
  • Manu Bhaskaran Asian Development Bank

    (Manu Bhaskaran is the President and Director of Centennial Asia Advisors Private Limited, Singapore.)

Abstract

The current global economic slowdown is unprecedented in scale and has severe implications on policy formulation among emerging market economies. A prolonged period of sub-par growth driven by the substantial weakening of the financial sectors will have multiple effects on these economies. In this article we shall explore the transmission mechanisms through which the global crisis impacts emerging market economies, particularly South Asia. After studying the shock amplifiers and shock absorbers present in South Asia we offer some crucial policy suggestions. In the short term, with inflation under control, aggressive monetary policy easing would be appropriate. This should be complemented by cautious fiscal stimuli. Material currency devaluation should be considered only in the event of clear misalignment. Policy coordination at the regional level should also be practised. In the longer term, structural enhancements such as increased economic diversification, infrastructure development and augmented regional integration will be the primary tools to help bolster resilience against future external shocks.

Suggested Citation

  • Manu Bhaskaran Asian Development Bank, 2009. "The Impact of the Global Economic Slowdown on South Asia," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 1(2), pages 159-239, May.
    • Handle: RePEc:sae:emeeco:v:1:y:2009:i:2:p:159-239
    DOI: 10.1177/097491010900100204
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/097491010900100204
    Download Restriction: no
    File URL: https://libkey.io/10.1177/097491010900100204?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Siddiqui, Tasneem. & Abrar, Chowdhury R., 2003. "Migrant worker remittances and microfinance in Bangladesh," ILO Working Papers 993632983402676, International Labour Organization.
    2. repec:ilo:ilowps:363298 is not listed on IDEAS
    3. Aradhna Aggarwal, 2008. "Regional Economic Integration and FDI in South Asia - Prospects and Problems," Macroeconomics Working Papers 22141, East Asian Bureau of Economic Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Prema-chandra Athukorala, 2013. "Intra-Regional FDI and Economic Integration in South Asia: Trends, Patterns and Prospects," Departmental Working Papers 2013-05, The Australian National University, Arndt-Corden Department of Economics.
    2. Md. Hashibul Hassan & Lubna Jebin, 2018. "Comparative Capability of Migrant and Non-Migrant Households: Evidence from Rural Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(5), pages 618-640, May.
    3. World Bank, 2016. "Bangladesh Social Protection and Labor Review," World Bank Publications - Reports 25265, The World Bank Group.
    4. Prema-chandra Athukorala, 2014. "Intra-regional FDI and Economic Integration in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 15(1), pages 1-35, March.
    5. Antra Bhatt & Manas Puri & Andrea Appolloni, 2012. "SEZ Proliferation in India: Are the Objectives Being Realized?," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 19(1), pages 79-88, September.
    6. Mohammad Zillur Rahman, 2011. "An Empirical Study on the Relationship between Foreign Investment and International Trade in Bangladesh," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 2(2), pages 33-39, July.
    7. Shaker, Saber Adly, 2015. "العلاقة بين الاستثمار الأجنبى المباشر والتجارة الدولية: حالة مصر [The Relationship between FDI and International Trade: The Case of Egypt]," MPRA Paper 82752, University Library of Munich, Germany.
    8. Gould, David M. & Tan, Congyan & Emamgholi, Amir S. Sadeghi, 2013. "Attracting foreign direct investment : what can South Asia's lack of success teach other developing countries ?," Policy Research Working Paper Series 6696, The World Bank.
    9. Ansari, Nasim & Khan, Tamanna, 2011. "FDI and regional economic integration in SAARC region: problems and prospects," MPRA Paper 32365, University Library of Munich, Germany.
    10. Sharif, Iffath A., 2012. "Can Proxy Means Testing Improve the Targeting Performance of Social Safety Nets in Bangladesh?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 35(2), pages 1-43, June.
    11. Jihad Ait Soussane & Mohamed Yassine Fakhouri & Ayoub Sabir Almaslouhi & Zahra Mansouri, . "Does language affect the location choice of developing-economy MNEs? The case of Moroccan outward FDI," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.
    12. World Bank, 2009. "Banking the Poor : Measuring Banking Access in 54 Economies," World Bank Publications - Books, The World Bank Group, number 13804.
    13. Kumar, Rajiv & Singh, Manjeeta, 2009. "India’s Role in South Asia Trade and Investment Integration," Working Papers on Regional Economic Integration 32, Asian Development Bank.
    14. World Bank, 2013. "Trends and Determinants of Foreign Direct Investment in South Asia," World Bank Publications - Reports 16522, The World Bank Group.
    15. William M. Fonta & Elias T. Ayuk & Jude O. Chukwu & Onyukwu E. Onyukwu & Cletus C. Agu & Innocent O. Umenwa, 2015. "Dynamics of remittance utilization by Nigerian households," Progress in Development Studies, , vol. 15(4), pages 343-357, October.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:emeeco:v:1:y:2009:i:2:p:159-239. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.emergingmarketsforum.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.