Global Imbalances: The Role of Emerging Asia

By Massimiliano Pisani, Pietro Cova, Alessandro Rebucci

March 1, 2009

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Massimiliano Pisani, Pietro Cova, and Alessandro Rebucci. Global Imbalances: The Role of Emerging Asia, (USA: International Monetary Fund, 2009) accessed September 19, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

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.

Subject: Productivity, Real interest rates, Terms of trade, Total factor productivity, Trade balance

Keywords: Asia, Exchange rate, WP

Publication Details

Pages:

40
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/064
Stock No:

WPIEA2009064
ISBN:

9781451872118
ISSN:

1018-5941

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