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Global Economic Crisis: Enter the Dragon

Soumyananda Dinda ()

MPRA Paper from University Library of Munich, Germany

Abstract: China is emerging as a giant in Asia as well as in the world economy. Now China is a major economic hub in the world. China has double role in international trade – first it attracts inputs from the East and South East Asia region and secondly pushes the products in international market with a comparative advantage in price competition. This is possible because China is economically integrated with region and the world as a whole. This paper attempts to measure the economic integration issue. The economic integration can be measured as the degree of association among nations, i.e., correlation. The paper observed a strong integration in the region in terms of tariff cut for reducing trade barriers and promote the smooth flow of trade. Co-integration technique provides the economic integration of China’s export to the US and its import from East and South East Asia region.

Keywords: Economic Integration; Co-integration; Correlation; Double Engine of Growth; Export; Import. (search for similar items in EconPapers)
JEL-codes: C2 C5 F2 (search for similar items in EconPapers)
Date: 2011, Revised 2014
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