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Interdependence of Production and Income in Asia-Pacific Economies: An International Input-Output Approach

Author

Listed:
  • Tomoko Mori

    (Bank of Japan)

  • Hitoshi Sasaki

    (Bank of Japan)

Abstract

In this paper, we investigate interdependencies between Asia-Pacific economies by using the Asian International Input-Output Table. The results of production inducement analysis show that the production inducement coefficients of many Asia-Pacific countries have recently increased, and in particular production inducements to East Asian countries, especially China, have increased. Thus, interdependencies between Asia-Pacific economies in terms of global production networks deepened further from 2000 onwards through increases in trade in intermediate products. In particular, China plays a more important role than ever as the main production center in the Asia-Pacific region. Moreover, the degrees of income dependence between these countries are examined. It is found that East Asian economies have not necessarily become more autonomous than before in terms of their income dependence. Rather, their economic structure still tends to be affected by economic developments outside the region.

Suggested Citation

  • Tomoko Mori & Hitoshi Sasaki, 2007. "Interdependence of Production and Income in Asia-Pacific Economies: An International Input-Output Approach," Bank of Japan Working Paper Series 07-E-26, Bank of Japan.
  • Handle: RePEc:boj:bojwps:07-e-26
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    References listed on IDEAS

    as
    1. Koichiro Kamada & Ko Nakayama & Izumi Takagawa, 2002. "Deepening Interdependence in the Asia-Pacific Region: An Empirical Study Using a Macro-Econometric Model," Bank of Japan Working Paper Series Research and Statistics D, Bank of Japan.
    2. Yuichi Hasebe & Nagendra Shrestha, 2006. "Economic Integration in East Asia: An International Input‐Output Analysis," The World Economy, Wiley Blackwell, vol. 29(12), pages 1709-1735, December.
    3. Koichiro Kamada & Izumi Takagawa, 2005. "Policy coordination in East Asia and across the Pacific," International Economics and Economic Policy, Springer, vol. 2(4), pages 275-306, December.
    4. Barry Eichengreen & Hui Tong, 2007. "Is China’s FDI Coming at the Expense of Other Countries?," Chapters, in: Klaus Liebscher & Josef Christl & Peter Mooslechner & Doris Ritzberger-Grünwald (ed.), Foreign Direct Investment in Europe, chapter 11, Edward Elgar Publishing.
    5. Benoît Mercereau, 2005. "FDI Flows to Asia: Did the Dragon Crowd Out the Tigers?," IMF Working Papers 2005/189, International Monetary Fund.
    6. Barry Eichengreen & Yeongseop Rhee & Hui Tong, 2004. "The Impact of China on the Exports of Other Asian Countries," NBER Working Papers 10768, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Hitoshi Sasaki & Satoko Ueyama, 2009. "China's Industrial Structure and its Changes in Recent Years: An Analysis of the 1997-2005 Input-Output Tables," Bank of Japan Working Paper Series 09-E-2, Bank of Japan.
    2. Andreas Maurer & Christophe Degain, 2012. "Globalization And Trade Flows: What You See Is Not What You Get!," Journal of International Commerce, Economics and Policy (JICEP), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-27.
    3. Sudip Basu & Clovis Freire & Pisit Puapan & Vatcharin Sirimaneetham & Yusuke Tateno, 2013. "Euro zone debt crisis: scenario analysis and implications for developing Asia-Pacific," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 18(1), pages 1-25.
    4. Satoshi Inomata (ed.), 2011. "Asia Beyond the Global Economic Crisis," Books, Edward Elgar Publishing, number 14205.
    5. Peter A. Petri, 2011. "An Input–Output Analysis of Post-crisis Rebalancing in the Asia-Pacific Economy," Chapters, in: Satoshi Inomata (ed.), Asia Beyond the Global Economic Crisis, chapter 7, Edward Elgar Publishing.
    6. Helble, Matthias & Ngiang, Boon-Loong, 2016. "From global factory to global mall? East Asia’s changing trade composition and orientation," Japan and the World Economy, Elsevier, vol. 39(C), pages 37-47.
    7. Sanjay Kalra, 2010. "Investigating growth spillovers from Europe," IMF Working Papers 2010/119, International Monetary Fund.
    8. Helble, Matthias & Ngiang, Boon-Loong, 2014. "From Global Factory to Global Mall: East Asia’s Changing Trade Composition," ADBI Working Papers 496, Asian Development Bank Institute.
    9. Peltonen, Tuomas A. & Pula, Gabor, 2009. "Has emerging Asia decoupled? An analysis of production and trade linkages using the Asian international input-output table," Working Paper Series 993, European Central Bank.
    10. Ibrahim & Tri Winarno & Melva Viva & Yanfitri, 2014. "The Regional Impact Transmission via International Trade: An ASIAN-IO Approach," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 16(4), pages 315-346, April.

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    More about this item

    Keywords

    Asian International Input-Output Table; production inducement coefficient; degree of income dependence;
    All these keywords.

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • F15 - International Economics - - Trade - - - Economic Integration

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