An abiding belief in the global economy is that the East is one gigantic Foxconn-shaped, steroid-boosted manufacturing facility, pumping out iPhones, shoes, clothing, refrigerators, air-conditioners, and defective toys that its own people could never afford.
In this narrative, the only reason that measured Eastern GDP shows any kind of life is because the Western consumer steps into the breach to buy up these manufactures.
The confirming natural experiment would then be what was sure to occur post-2008, when Western imports collapsed.
Here is what actually happened...
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About Danny Quah
Professor of Economics and Kuwait Professor, LSE. Economist – Growth and distribution.
I write about the shifting global economy and the rise of the east. I try to make large things visible to the naked eye.
I try to be an interesting dad.