The Asian Recession and Northern Labour Markets

18 Pages Posted: 12 Apr 2004

See all articles by Rod Tyers

Rod Tyers

Australian National University (ANU) - School of Economics; The University of Western Australia - Department of Economics

Yongzheng Yang

International Monetary Fund (IMF) - African Department

Abstract

The Asian recession saw an increase in the volume of mainly manufactured Asian Exports. Other things equal, this would have disadvantaged the labour intensive end of northern (mainly USA and EU) manufacturing and hence the northern manufacturing workforce. Central to the crisis, however, was a redirection of investment away from Asia to the north, raising northern aggregate demand and hence employment in northern services. This paper examines the magnitudes of these two effects in a broader analysis of the real impacts of the Asian recession that is grounded in a global general equilibrium framework. Northern workers are found to be net beneficiaries in both the short and medium run.

Suggested Citation

Tyers, Rod and Yang, Yongzheng, The Asian Recession and Northern Labour Markets. Economic Record, Vol. 80, pp. 58-75, March 2004. Available at SSRN: https://ssrn.com/abstract=513512

Rod Tyers (Contact Author)

Australian National University (ANU) - School of Economics ( email )

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The University of Western Australia - Department of Economics ( email )

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HOME PAGE: http://www.business.uwa.edu.au/school/staff-profiles?type=profile&dn=cn%3DRodney%20Tyers%2Cou%3DEcon

Yongzheng Yang

International Monetary Fund (IMF) - African Department ( email )

1700 19th Street, NW
Washington, DC 20431
United States
202-623-4339 (Phone)
202-623-4237 (Fax)

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