Economic Development in Emerging Asian Markets: Implications for Europe

Posted: 27 Oct 2008 Last revised: 3 Jan 2012

See all articles by Will J. Martin

Will J. Martin

International Food Policy Research Institute (IFPRI)

Elena Ianchovichina

World Bank

Betina Dimaranan

International Food Policy Research Institute; Purdue University - Department of Agricultural Economics

Date Written: September 1, 2008

Abstract

The impacts of faster growth in China and India for Europe are analysed taking into account terms-of-trade effects, second-best welfare impacts and improvements in product quality and variety. More rapid growth in these giants could improve Europe's terms of trade, but second-best effects on energy markets could lower welfare unless these taxes are Pigovian. Whether growth arises from productivity or capital accumulation has important implications, with capital-driven growth involving higher energy and agricultural prices. When quality and variety growth are taken into account, the benefits to Europe are substantially greater. If agricultural protection in emerging Asia increases with growth, the impacts on Europe appear to be adverse but small.

Keywords: economic growth, China, India, Europe, product quality, product variety, F11, F43, Q17

Suggested Citation

Martin, William J. and Ianchovichina, Elena and Dimaranan, Betina, Economic Development in Emerging Asian Markets: Implications for Europe (September 1, 2008). European Review of Agricultural Economics, Vol. 35, No. 3, pp. 303-330, 2008. Available at SSRN: https://ssrn.com/abstract=1289123 or http://dx.doi.org/jbn017

William J. Martin (Contact Author)

International Food Policy Research Institute (IFPRI) ( email )

1201 Eye St, NW,
Washington, DC 20005
United States

Elena Ianchovichina

World Bank ( email )

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States
202-458-8910 (Phone)
202-522-1159 (Fax)

Betina Dimaranan

International Food Policy Research Institute ( email )

2033 K Street NW
Washington, DC 20006
United States
(202) 862-8155 (Phone)
(202) 467-4439 (Fax)

Purdue University - Department of Agricultural Economics ( email )

West Lafayette, IN 47907-1145
United States
(765) 494-4318 (Phone)

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