Whether it’s rattling financial markets or swaying commodity prices, China is a powerful pacesetter in the Asian regional economy. Trade interconnections form the main routes for the cascading economic effects that occur between China and its neighbors, although growing financial system ties among Asian nations also play a part, according to economists Serkan Arslanalp, Wei Liao, Shi Piao and Dulani Seneviratne. Their study presents ideas on how countries in the region can mitigate the amplified risks of destabilization from ever-increasing linkages. getAbstract recommends their comprehensive report to policy makers, executives and investors concerned about the impacts of China-related shocks.
About the Authors
Serkan Arslanalp, Wei Liao, Shi Piao and Dulani Seneviratne are economists at the International Monetary Fund.