to where there is scope for scaling up. In terms of spillover effects, China’s top ten exporters for each product will be considered, in proportion to their current export exposure to China (for these products). The “ cascading” approach uses more granular bilateral trade data (at the 6-digit level) and considers all trading partners (instead of top-ten exporters). Among these goods that may be potentially redirected, commodities are assumed to be redirected before manufactures, while goods such as aircraft, that may involve prior contracts, are assumed to be
indirect trade linkages between Asian and advanced economies (such as Malaysia’s export exposure to the United States through its exports of intermediate goods to China). Second, the chapter assesses whether consumption and investment in Asia are “too low” and the amount of resources employed in the tradable sector “too high” by comparing them with benchmarks, both model-based and empirical. Third, it uses the IMF’s global integrated monetary and fiscal (GIMF) model to assess the impact of macroeconomic and structural policies that could be adopted in Asia and abroad to