The Impact of the Asia Crisis on U.S. Industry: An Almost-Free Lunch?

11 Pages Posted: 7 Mar 2006

See all articles by James Harrigan

James Harrigan

University of Virginia - Department of Economics; National Bureau of Economic Research (NBER)

Abstract

Despite predictions to the contrary, the Asia crisis had only modest overall effects on the United States. The expected surge in import volumes did not materialize and the drop in demand for U.S. exports was not enough to slow the nation's robust economy. Nevertheless, these overall effects could have masked other, larger effects in particularly vulnerable U.S. industries. To examine this possibility, the author conducts a sector-level analysis of the turmoil's impact. He concludes that, with the exception of the steel industry, imports from Asia do not compete directly with U.S. products. Accordingly, an appreciation in the dollar with respect to Asian currencies leads to consumption gains with little or no domestic pain.

Keywords: Asia Crisis, exports, currency, U.S. economy

JEL Classification: F1, L6

Suggested Citation

Harrigan, James, The Impact of the Asia Crisis on U.S. Industry: An Almost-Free Lunch?. Economic Policy Review, Vol. 6, No. 3, September 2000. Available at SSRN: https://ssrn.com/abstract=888765

James Harrigan (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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