scholarly journals Global and regional shock transmission: an Asian perspective

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Nagendra Shrestha ◽  
Kiyotaka Sato
Keyword(s):  
Global Financial Crisis ◽  
Value Added ◽  
Sharp Decrease ◽  
Asian Countries ◽  
Foreign Countries ◽  
Asymmetric Pattern ◽  
Shock Transmission ◽  
Global Demand ◽  
Substantial Decline ◽  
The Global Financial Crisis

AbstractThis paper constructs and uses the global input–output (GIO) table with 35 industries, 29 endogenous countries and 59 exogenous countries, and develops new indices to measure the degree of shock transmission in terms of intermediate goods and value-added embodied in production induced by negative global demand shock to finished goods. After the Global Financial Crisis (GFC) in 2008, China did not experience a large decline in economic growth, even though China’s gross exports fell most severely among Asian countries. In contrast, a sharp decrease in Japanese GDP in 2009 is a consequence of a substantial decline in finished goods exports, especially in the transport equipment industry. In Japan, the shock effect tends to be absorbed in its domestic sector and is not transmitted to other foreign countries. An asymmetric pattern of shock transmission between Japan and other Asian countries can explain why Japan was more affected by GFC than other Asian countries.

scholarly journals Global and Regional Shock Transmission ―Application of Global Input-Output Table―

2021 ◽  
Author(s):  
Nagendra Shrestha ◽  
Kiyotaka Sato
Keyword(s):  
Global Financial Crisis ◽  
Value Added ◽  
Sharp Decrease ◽  
Input Output ◽  
Asian Countries ◽  
Foreign Countries ◽  
Asymmetric Pattern ◽  
Shock Transmission ◽  
Substantial Decline ◽  
The Global Financial Crisis

Abstract This paper constructs and uses the global input-output (GIO) table with 35 industries, 29 endogenous countries and 59 exogenous countries, and develops new indices to measure the degree of shock transmission in terms of intermediate goods and value-added embodied in production induced by negative global demand shock to finished goods. After the Global Financial Crisis (GFC) in 2008, China did not experience a large decline in economic growth, even though China’s gross exports fell most severely among Asian countries. In contrast, a sharp decrease in Japanese GDP in 2009 is a consequence of a substantial decline in finished goods exports, especially in the transport equipment industry. In Japan, the shock effect tends to be absorbed in its domestic sector and is not transmitted to other foreign countries. An asymmetric pattern of shock transmission between Japan and other Asian countries can explain why Japan was more affected by GFC than other Asian countries.

Labour Markets in the Global Financial Crisis: The Good, the Bad and the Ugly

2014 ◽  
Vol 228 ◽  
pp. R58-R64 ◽  
Author(s):  
Mary C. Daly ◽  
John G. Fernald ◽  
Òscar Jordà ◽  
Fernanda Nechio
Keyword(s):  
Financial Crisis ◽  
Labour Market ◽  
Global Financial Crisis ◽  
Technological Changes ◽  
Okun’S Law ◽  
Short Term ◽  
Demand Shock ◽  
Okun's Law ◽  
Global Demand ◽  
The Global Financial Crisis

This note examines labour market performance across countries through the lens of Okun's Law. We find that after the 1970s but prior to the global financial crisis of the 2000s, the Okun's Law relationship between output and unemployment became more homogenous across countries. These changes presumably reflected institutional and technological changes. But, at least in the short term, the global financial crisis undid much of this convergence, in part because the affected countries adopted different labour market policies in response to the global demand shock.

scholarly journals TRANSMISI DAMPAK MELALUI JARINGAN PERDAGANGAN: PENDEKATAN ASIAN-IO

2014 ◽  
Vol 16 (4) ◽  
pp. 339-372
Author(s):  
Ibrahim Ibrahim ◽  
Tri Winarno ◽  
Melva Viva Grace ◽  
Yan Fitri
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Value Added ◽  
Jel Classification ◽  
Input Output ◽  
Asian Countries ◽  
Production Chain ◽  
The Us ◽  
Similar Point ◽  
The Impact

Global financial crisis which began in the US in the latter part of 2008 hit a lot of countries in both trade and finance. In trade aspect, the crisis spread widely; in Indonesia, the total export value in 2009 dropped to 14,3%. Therefore, the economy of China, tightly linked with Asian countries including Indonesia, which rapidly rose before the crisis but slowed after it should be monitored as this condition, could indirectly hold down Indonesia’s GDP. Applying RAS method to update Asian IO data, this research has attempted to describe the trade structure of Asian countries in 2010. Also, it implemented a simulation of the impact of US and China’s GDP decline and US exports on Indonesia’s GDP, both at aggregate and sector levels. The result of the mapping shows that Indonesia is getting more dependent on China. Generally, the link between Indonesia’s exported products and global production chain is weak. Indonesia’s export commodities which are mostly of intermediate goods have low contribution towards value added. Moreover, the result of the simulation shows that 1% decrease in China’s GDP has greater impact on Indonesia’s GDP (0,14%) than that of the US (0,05%) and EU (0,07%) though with similar point.  Keyword: Trade Interactions, Input Output Model JEL Classification : F16, R15

scholarly journals GLOBALIZATION AND TRADE FLOWS: WHAT YOU SEE IS NOT WHAT YOU GET!

2012 ◽  
Vol 03 (03) ◽  
pp. 1250019 ◽  
Author(s):  
ANDREAS MAURER ◽  
CHRISTOPHE DEGAIN
Keyword(s):  
Global Financial Crisis ◽  
Value Added ◽  
Value Chains ◽  
Globalized Economy ◽  
Fragmentation Of Production ◽  
Merchandise Trade ◽  
The Global Financial Crisis ◽  
New Statistics ◽  
The Impact ◽  
Trade In Value Added

The trade collapse that followed the global financial crisis of 2008–2009 has led to a renewed interest in measurement issues affecting international merchandise trade statistics in the new globalized economy. The international fragmentation of industrial production blurs the concept of country of origin and calls for the production of new statistics on the domestic content of exports, with a view of estimating trade in value added. In 2010, the international statistical community revised the concepts and definitions on both international merchandise trade and trade in services statistics. This paper discusses the various issues related to the concepts of "goods for processing" and "intra-firm trade" in trade statistics, and provides an overview of the method of analyzing the impact of the fragmentation of production in international value chains.

Two Crises Separated by a Decade: Political Economy of Trade Strategy and Reserves Accumulation in East Asia

2021 ◽  
pp. 263168462110320
Author(s):  
Biswajit Nag ◽  
Partha Ray
Keyword(s):  
Financial Crisis ◽  
Current Account ◽  
Global Financial Crisis ◽  
East Asian ◽  
Jel Classification ◽  
Current Account Balance ◽  
Asian Countries ◽  
Trade Surplus ◽  
Major Shift ◽  
The Global Financial Crisis

This article seeks to explore the relationship between the global financial crisis (2007–2009) and the East Asian crisis (1997–1999) via the contribution of select East Asian countries, which led to the formation of the ‘global imbalance’, that is, experience of substantial and consistent current account surplus. Taking a cue from Bernanke’s ‘savings glut’ hypothesis, which has held ‘global imbalance’ to be a factor behind the global financial crisis, specifically, the article argues that in these countries, the nature of current account balance has undergone a sea change since the end of the 1990s. They also accumulated a substantial amount of foreign exchange reserves since then along with a major shift of trade regime and consequent trade surplus in all these countries. The article conjectures that the mishandling of the rescue package by International Monetary Fund could have induced them to go aggressively for accumulation of forex reserves. Thus, the two crises separated by a decade and in different continents are, indeed, linked through providing an incentive for brewing up of global imbalance via an activist trade policy in select East Asian countries. Seen in this context and from this standpoint, the two crises, indeed, appear to be close siblings! JEL Classification: F41, F62, O53

scholarly journals Securing Jobs in Times of Recession. The German Experience during the Financial Crisis 2008/2009

2020 ◽  
Vol 30 (1) ◽  
pp. 59
Author(s):  
Martin Dietz ◽  
Michael Stops ◽  
Ulrich Walwei
Keyword(s):  
World War Ii ◽  
Financial Crisis ◽  
Labour Market ◽  
Global Financial Crisis ◽  
Sharp Decrease ◽  
Working Time ◽  
Public Subsidies ◽  
Time Work ◽  
The Global Financial Crisis ◽  
Short Time

As a consequence of the global financial crisis Germany experienced the deepest slowdown of its economy since World War II. However, given the sharp decrease of GDP the German labour market was quite stable compared to previous recessions when the labour market response was stronger. Therefore, there are empirical indications for temporary labour hoarding and it can be shown that the most significant factor for securing jobs was a reduction of working time. At the beginning of the crisis the conditions for short-time work became more attractive to firms. Therefore, non-subsidised forms of working time reductions or labour hoarding were complemented by public subsidies in the form of short-time work.

scholarly journals An Evaluation of the Major Indicators of Economical Crisis in Central Asian Countries within the Framework of Global Financial Crisis of 2008

2012 ◽  
Author(s):  
Volkan Öngel ◽  
Serdar Kuzu
Keyword(s):  
Soviet Union ◽  
Financial Crisis ◽  
Global Financial Crisis ◽  
Developing Economies ◽  
Asian Countries ◽  
Future Expectations ◽  
Central Asian ◽  
The Usa ◽  
Central Asian Countries ◽  
The Global Financial Crisis

Several financial crises that have different causes and effects occured in financial markets in which globalization takes its effect increasingly. Central Asian Countries which have gained their independence after the disintegration of the Soviet Union in 1991 both faced important socio-cultural and political changes and were affected many global crises during 1991-2012. The global financial crisis which occured in the USA in 2008 as a mortgage crisis spreaded as a result of globalization and affected the developing economies. 2008 global financial crisis caused trouble especially in macroeconomic issues such as employment, production, supply, demand, level of welfare, openness, price stability, economic growth, inflation and unemployment. This study aims to imply how the selected Central Asian Countries have been affected by the 2008 global financial crisis and their future expectations by analysing leading macroeconomic indicators. In this context, the effects of the global financial crisis on macroeconomic variables of Kazakhistan, Azerbaijan, Kyrgyzstan, Turkmenistan and Uzbekistan will be interpreted. In the light of these indicators, it will be analysed if there are leading indicators for a coming economic crisis in Central Asian Countries and also how their economic structure will be in the near future.

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