Global Imbalances; The Role of Emerging Asia
Massimiliano Pisani (),
Pietro Cova () and
Alessandro Rebucci ()
No 09/64, IMF Working Papers from International Monetary Fund
This paper investigates the role played by emerging Asia in the emergence and evolution of the global trade imbalances. Based on simulations in a general equilibrium model of the world economy, we find that a productivity slowdown in the non-tradable sector of these economies in the second half of the 1990s fits regional macroeconomic developments relatively well, but has limited spillover effect to the United States trade balance. In contrast, an increase in the desired level of emerging Asia net foreign assets starting in 2001 not only fits regional developments relatively well, but also has a significant spillover effect to the United States.
Keywords: Balance of payments deficits; Cross country analysis; Demand; Emerging markets; Economic models; Productivity; Payments imbalances; Official reserves; International trade; Global imbalances; Foreign exchange reserves; emerging Asia, trade deficit, non-tradable sector, exchange rate, tradable goods, intermediate goods, terms of trade, elasticity of substitution, Non-tradable Sector Non-tradable Sector, (search for similar items in EconPapers)
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Journal Article: Global Imbalances: The Role of Emerging Asia (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:09/64
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