ECN 171 Economy of East Asia Homework 1
1. Find the International Monetary Fund¡¯s October 2023 World Economic Outlook Database online. For China, South Korea, Japan, and the United States, download the series for PPP-adjusted share of world GDP and the real GDP growth rate (GDP at constant prices, percent change), 1990-2028.
a. Plot each country¡¯s contribution to global GDP (their PPP-adjusted share of world GDP) over time, with all 4 series on the same chart. What was each country¡¯s share of world GDP in 1990? In 2019? What does the IMF predict it will be in 2028?
b. Plot each country¡¯s real GDP growth rate over time 1990-2028, again with all 4 series on the same chart.
c. What is the (simple, arithmetic) average annual growth rate for each country 2010-2019? Is the IMF¡¯s estimate for each country¡¯s 2022 growth rate higher or lower than this average?
2. Observe the series for each country¡¯s GDP growth rate to answer the following. Note the growth rates are expressed as a percent change, so the difference between two growth rates is in percentage points. (See the refresher on Percents, Percentages, and Ratios in our Canvas module.)
a. Which two countries were hit hardest by the pandemic by this measure in absolute terms (lowest growth rate in 2020)?
b. Which two countries were hit hardest during the pandemic by this measure in relative terms (growth rate in 2020 minus average pre-pandemic growth in 1.c. above)?
c. Which two countries experienced the strongest growth in 2021?
d. Which two countries experienced the biggest turnaround in 2021 (2021 growth rate minus 2020 growth rate)?
3. Using the world GDP shares as weights, compute how many percentage points each country contributed to the global GDP growth rate in 1990 versus 2022 and (predicted) 2028.
4. Using the same database, Download the series for the world real GDP growth rate (constant prices percent change), 1990-2026.
a. What fraction of the global growth rate in 1990, 2022, and 2028 is contributed by China¡¯s growth? (Use the ratio of what you computed in #3 above to the world GDP growth rate to get your estimate.)
b. How do these compare to China¡¯s share of global growth in 2019?
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