 Output relationships of China and India with the USA: How do the Asian giants respond to America?Biru Paksha Paul Global Economic Review, 2012, vol. 41, issue 1, 97-110 Abstract: With the advent of globalization, China and India, the two emerging giants of the world, are being integrated with the US, the leading economy, more than ever before. Hence, examining output relationships among them becomes necessary. This work finds a long run cointegrating relationship in output among these countries. The US economy remains exogenous in the short run error correction mechanism, but China and India correct any deviations from this equilibrium relationship. While theory expects a positive response of China and India to an output shock in America, India, and China respond in a significantly negative fashion to the US economy, as found in impulse responses. The US explains a major share of output variance in these Asian economies, but the reverse is not true. These findings have policy implications not only for India and China, but also for other developing nations that are growing fast through globalization and embracing further integration with the US economy. Date: 2012 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:glecrv:v:41:y:2012:i:1:p:97-110 Ordering information: This journal article can be ordered from DOI: 10.1080/1226508X.2012.655030 Access Statistics for this article Global Economic Review is currently edited by Kap-Young Jeong and Taeyoon Sung More articles in Global Economic Review from Taylor & Francis Journals |
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