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Effects of the People’s Republic of China’s Structural Change on the Exports of East and Southeast Asian Economies

Author

Listed:
  • Lee, Hyun-Hoon

    (Kangwon National University.)

  • Park, Donghyun

    (Asian Development Bank)

  • Shin, Kwanho

    (Korea University.)

Abstract

The Chinese economy is slowing down and, at the same time, it is in the midst of a structural transformation from an export- and investment-led economy to a domestic demand- and consumption-led growth paradigm. While there are widespread concerns in the People’s Republic of China’s (PRC) trading partners about the effect of the PRC’s growth slowdown on their exports, the PRC’s structural change is also likely to have a significant impact—e.g. the PRC will import fewer machines and more cosmetics. The central objective of our paper is to empirically examine the effect of the PRC’s structural transformation on the exports of East and Southeast Asian economies, which have close trade linkages with the PRC. We find that economies which failed to increase the share of consumption goods in their exports to the PRC suffered larger declines in their exports to the PRC. In addition, economies that suffered losses in their shares of the PRC’s parts and components imports suffered losses in their shares of the PRC’s total imports.

Suggested Citation

  • Lee, Hyun-Hoon & Park, Donghyun & Shin, Kwanho, 2016. "Effects of the People’s Republic of China’s Structural Change on the Exports of East and Southeast Asian Economies," ADB Economics Working Paper Series 492, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0492
    as

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    References listed on IDEAS

    as
    1. Mr. Il Houng Lee & Mr. Murtaza H Syed & Mr. Liu Xueyan, 2012. "Is China Over-Investing and Does it Matter?," IMF Working Papers 2012/277, International Monetary Fund.
    2. Lee, Hyun-Hoon & Park, Donghyun & Wang, Jing, 2013. "Different types of firms, different types of products, and their dynamics: An anatomy of China's imports," China Economic Review, Elsevier, vol. 25(C), pages 62-77.
    3. Andrew K. Rose, 2004. "Do We Really Know That the WTO Increases Trade?," American Economic Review, American Economic Association, vol. 94(1), pages 98-114, March.
    4. Qin, Duo & Song, Haiyan, 2009. "Sources of investment inefficiency: The case of fixed-asset investment in China," Journal of Development Economics, Elsevier, vol. 90(1), pages 94-105, September.
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    Cited by:

    1. Marcato, Marilia Bassetti & Dweck, Esther & Montanha, Rafael, 2022. "The densification of Chinese production chains in the context of vertically fragmented production," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 75-89.

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    More about this item

    Keywords

    People’s Republic of China; East Asia; export; global value chain; structural change;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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