The Asian financial crisis and global adjustments: Implications for US agriculture

Warwick J. McKibbin*, Zhi Wang, William Coyle

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

This study investigates the impact of the recent Asian financial crisis on global economic adjustment and its implication for US agriculture using a multi-country, multi-sector dynamic intertemporal general equilibrium model with endogenously modelled financial markets. The simulation results show that the crisis in Asia reduces not only US exports but also interest rates and the cost of intermediate inputs of production, stimulating US domestic economic activity in interest-sensitive sectors, and driving up demand for agriculture products. However, this stimulus of domestic demand may or may not offset the negative impact of declining exports.

Original languageEnglish
Pages (from-to)471-490
Number of pages20
JournalJapanese Economic Review
Volume52
Issue number4
DOIs
Publication statusPublished - 2001

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