Munich Personal RePEc Archive

Global Economic Crisis: Enter the Dragon

Dinda, Soumyananda (2011): Global Economic Crisis: Enter the Dragon.

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China is emerging as a giant in Asia as well as in the world economy. Now China is a major economic hub in the world. China has double role in international trade – first it attracts inputs from the East and South East Asia region and secondly pushes the products in international market with a comparative advantage in price competition. This is possible because China is economically integrated with region and the world as a whole. This paper attempts to measure the economic integration issue. The economic integration can be measured as the degree of association among nations, i.e., correlation. The paper observed a strong integration in the region in terms of tariff cut for reducing trade barriers and promote the smooth flow of trade. Co-integration technique provides the economic integration of China’s export to the US and its import from East and South East Asia region.

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