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Asia's rebalancing and growth.
- Source :
- World Economy; Oct2018, Vol. 41 Issue 10, p2709-2731, 23p, 9 Diagrams, 4 Graphs
- Publication Year :
- 2018
-
Abstract
- The paper investigates the impact of Asia's demand rebalancing and supply‐side productivity changes on long‐term economic growth in Asia and worldwide. Results from a panel vector autoregression model show that a productivity–neutral demand‐rebalancing shock has no permanent effect on Asian output, whereas labour productivity shocks have significant, positive and permanent effects. Simulations using a global intertemporal multisector general equilibrium model suggest that labour productivity shocks increase the foreign GDP over time, but rebalancing shocks have a negative international spillover effect. In addition, labour productivity shocks help in rebalancing. Structural reforms promoting labour productivity growth along with rebalancing policies across Asia can achieve higher economic growth worldwide. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03785920
- Volume :
- 41
- Issue :
- 10
- Database :
- Complementary Index
- Journal :
- World Economy
- Publication Type :
- Academic Journal
- Accession number :
- 132309435
- Full Text :
- https://doi.org/10.1111/twec.12608