Fig. 1

Graphic illustration of shock transmission: case of 4 endogenous counties. Figures are in terms of million US dollars. Figures in parentheses are induced value-added. It is assumed that Chinese exports of finished goods decline (10% decline in actual finished goods export in 2005) by $17 billion (a thick arrow). a The direct effect causes not only a fall of China’s production but also induces a fall in intermediate input imports from other three countries (thin arrows). b A fall in China’s imports of intermediate inputs from Japan causes not only a decline in Japanese production but also a fall of Japanese imports from other three countries (dotted arrows). Source: YNU-GIO table and UN Comtrade database