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Title: |
Asian NICs' Persistent Trade Deficit with
Japan |
| Author: |
Chou, W. L.;
Shih, Y. C. |
| Author
Affiliation: |
Chinese U of
Hong Kong |
| Source: |
International Economic Journal, Autumn 1991, v. 5, no. 3, pp. 59-74 |
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Publication Date: |
Autumn 1991 |
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Abstract: |
This paper examines the responsiveness of
the trade flows between Asian NICs and Japan to macroeconomic variables
and analyzes the production structure in the NICs to explain their trade
imbalance. It is found that Japan's real income must grow at a much
higher rate than the four "little dragons" to achieve a more balanced
trade relationship with the NICs. Price or exchange rate variations
would not provide the needed adjustment mechanism for the NICs. This
study subscribes to the view that industrialization of the
export-oriented economies of the NICs has caused persistent dependence
on imports from Japan. |
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