Trade-led Growth

A Sound Strategy for Asia

image of Trade-led Growth
The global economic crisis triggered changes in real economies and trade in all countries, including those in Asia, which adopted the so-called export-led growth model. With these drastic changes in trade flows, and the need to counteract potential adverse effects, the old debate on the advantages and flaws of the export-led model has re-opened. It aims to provide some theoretical and empirical reasons towards an argument that for developing Asian economies, export-led growth is still a valid model of stable, equitable and sustainable growth. It also combines local research with that of established ones. While there is extensive literature focusing on the role of openness and trade in a country’s development, much of it dates to before the most recent global crisis. Volumes that were recently published argue against an export-led growth strategy, while this volume argues in defence of trade-led growth for the Asian region.



Do institutions matter for trade in Asian countries?

The rise of Asia as a major economic power and global growth centre is an unprecedented development in the contemporary world. By any standard, Asia’s economic performance has greatly improved; per capita incomes have risen much more rapidly in the past few decades as the population growth rate has fallen while the rate of increase in output has risen. The absolute number of people living in poverty, while still large, has decreased dramatically. Asia’s participation in the international economy has increased, with greatly reduced barriers to international transactions. Trade and economic integration within the region and with the rest of the world has played an important role in Asia’s economic success. However, the current financial crisis has severely affected global trade, including exports from the Asia-Pacific region. As a result, economic integration has become a major challenge for the entire region. Quite naturally, the ongoing financial and economic crisis reinforces the need for economic integration.


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