External Rebalancing , Structural Adjustment , and Real Exchange Rates in Developing Asia ∗
نویسندگان
چکیده
This paper evaluates the impact of global external rebalancing on Developing Asia and the rest of the world using a multi-country multi-sector quantitative model of production and trade. Developing Asia countries currently running a trade surplus (such as People’s Republic of China or Malaysia) see a substantial rise in relative wages and an appreciation in the real exchange rate. They also see an increase in the size of the non-traded sector and an increase in welfare. Deficit countries in Developing Asia (such as India or Viet Nam) see a depreciation in the trade-weighted real exchange rate of a few percent, a shrinking of the non-traded sector, and a fall in welfare. JEL Classifications: F11, F43, O33, O47
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