The Role Of China In Asia: Engine, Conduit, Or Steamroller?

This paper assesses China's role in Asia as an independent engine of growth, as a conduit of demand from the industrial countries, and as a competitor for export markets. The author provides both macroeconomic and microeconomic evidence. The macroeconomic analysis focuses on the impact of U.S. and Chinese demand on the output of the Asian economies by estimating growth co-movements and VARs. The results suggest an increasing role of China as an independent source of growth.