Trade and Economic Growth in Asia: The Paradox of Globalization and Decoupling

2Q 2008


Economic events of 2007 – particularly the fall of US residential property values and the declining stock market – will put American households in a belt-tightening mode in 2008 and beyond. How will the rest of the world be affected by what seems to be an inevitable American recession? Can Asian companies continue to grow and prosper? The answer hinges on whether Asia has “decoupled” from the US. This study takes a close look at the prospects for Asia’s trade economies and whether it is possible for this developing region to be simultaneously more globalized and decoupled.

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