The Asian Financial Crisis and Global Adjustments: Implications for US Agriculture

Warwick J. McKibbin,
Warwick McKibbin
Warwick J. McKibbin Former expert - Economic Studies, Center on Regulation and Markets, Distinguished Professor of Economics & Public Policy - Crawford School of Public Policy, The Australian National University

William Coyle, and Zhi Wang
Zhi Wang Professor and Director - Research Center of Global Value Chains, University of International Business and Economics (Beijing)

December 1, 2001


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 endogeneously modeled
financial markets is investigated. 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.

JEL Codes: D58, F17, F30

Full article available from Japanese Economic Review.