Emerging China, Beneficial or Harmful ?: The Impact of Chinese Economic Growth on the Asian Regional Economy

The purpose of this study is to investigate whether emerging China is of benefit or harm for the Asian regional economy by examining a sample of nine Asian countries over the last twenty-six years (1978-2003). The study examines the impacts of Chinese economic performance on the growth of these countries. The study also provides a quantitative assessment on the importance of exports to Asian Trade Region (ATR) countries, interdependence on one other as trading partners, and the degree of competition that is felt by each country because China emerges as a big figure in a significant way. Parallel to this investigation, the study explores the trends of comparative advantages for ATR countries measured by the export similarity and revealed comparative advantages. The results show that the expansion of Chinese economy is presented as a positive factor for the growth of most other Asian regional countries, and it gives mutually benefit from the production chains which stimulate the regional growth.