Asian Trade And Global Linkages
Source: Asian Development Bank Institute
In the run-up to the 2008 global financial crisis, there was frequent discussion of Asia having decoupled from economic shock transmission originating in Europe or North America. Much of the basis for these arguments was related to the rapid expansion of intraregional trade in Asia. This paper examines the trade linkages among Asian countries and between Asia and other regions, paying particular attention to the role of production sharing processes diversified across geographically diffuse networks. While Asia's intraregional trade is high, most of it consists of parts and components; however, a large share of the region's final goods exports is still destined for extra-regional markets and subject to fluctuations in demand from those markets.