Economic integration and synchronization of business cycles in East Asia

Rana, Pradumna B.

doi:10.1016/j.asieco.2007.07.002

Cited by 54 publications

(29 citation statements)

References 3 publications

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“…Also Shin and Wang (2004), Rana (2006 and2007), and He et al (2007) find that trade is an important determinant of business cycle correlation for East Asian countries. Iwatsubo and Ogawa (2009) Richter (2008) analyse the declining importance of the USA for Asia.…”

Section: International Transmission Of Business Cyclesmentioning

confidence: 99%

The impact of the global financial crisis on business cycles in Asian emerging economies

Fidrmuc

Korhonen

2010

Journal of Asian Economics

145

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We analyze the transmission of global financial crisis to business cycles in China and India. The pattern of business cycles in emerging Asian economies generally displays a low degree of synchronization with the OECD countries, which is consistent with the decoupling hypothesis. By contrast, however, the current financial crisis has had a significant effect on economic developments in emerging Asian economies. Applying dynamic correlations, we find wide differences for different frequencies of cyclical development. More specifically, at business cycle frequencies, dynamic correlations are typically low or negative, but they are also influenced most by the global financial crisis. Finally, we find a significant link between trade ties and dynamic correlations of GDP growth rates in emerging Asian countries and OECD countries. Terms of use: Documents inJEL Code: E32, F15, F41.

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Section: International Transmission Of Business Cyclesmentioning

confidence: 99%

The impact of the global financial crisis on business cycles in Asian emerging economies

Fidrmuc

Korhonen

2010

Journal of Asian Economics

145

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“…Their experiment also implies that intra-trade intensity has stronger e¤ects on comovement, if Japan is dropped from the sample. Rana (2007), extending Shin and Wang (2004) by adding the explanatory variables such as intraindustry trade and …scal policy measures, also …nds the importance of the role of trade channel. Choe (2001) conducts a regression of cyclical components of GDP on trade intensity for ten Asian countries for 1981-1995 and …nds that Japan has a large impact on business cycle synchronization in this region.…”

Section: Introductionmentioning

confidence: 99%

Accounting for the economic relationship between Japan and the Asian Tigers

Hirata

Otsu

2016

Journal of the Japanese and International Economies

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In this paper, we construct a two-country business cycle accounting model in order to investigate quantitatively the relationship between Japan and the Asian Tigers. Our model is based on Backus, Kehoe and Kydland (1994) in which each economy produces tradable intermediate goods that are aggregated to form …nal goods within each economy. We apply the business cycle accounting method of Chari, Kehoe and McGrattan (2007) and …nd that the main source of high frequency ‡uctuation in output in each economy is the ‡uctuation of production e¢ ciency within its own economy. Furthermore, the growth in the Asian Tigers' production e¢ ciency had a signi…cant positive e¤ect on Japanese economic growth over the 1980-2009 period through the endogenous terms of trade e¤ect.JEL Classi…cation: E13, E32, F41

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“…Based on this theory, many studies analyzed the relationship between trade and business cycle correlation in Organization for Economic Cooperation (OECD) countries (Frankel and Rose 1998, Fidrmuc 2004, Baxter and Kouparitsas 2005, Inklaar et al 2008, Gouveia and Correia 2013, Caporale et al 2015 as well as in Asian countries (Shin and Wang 2003, Kumakura 2006, Rana 2007, in order to discern whether these zones are optimal currency areas or not. To our knowledge, no works have dealt with this issue for the Maghreb countries.…”

Section: Introductionmentioning

confidence: 99%

Business Cycles in the Maghreb : Does Trade Matter?

Eggoh

Belhadj

2015

JEI

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In this paper, we test the Frankel & Rose hypothesis of Optimum Currency Area for the Maghreb countries by demonstrating how the co-movements of outputs would respond to a trade integration process. In particular, by using panel analysis over the period 1980~2010, we evaluate if a monetary integration project across these countries is endogenous. Our main result suggests that while trade intensity may help to harmonize business cycles, the magnitude of this harmonization is lower for the Maghreb countries than for industrial countries. This result is robust even when we take into consideration many control variables including intra-industry trade, economic diversification, and financial integration. Therefore, we suggest that an acceleration of trade linkage as well as product diversification should take place prior to any move towards monetary union across the Maghreb countries. Business Cycles in the Maghreb Acknowledgements:We are grateful to S. Béji and R. Bazilier for their useful comments and suggestions. The usual disclaimer applies.

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Economic integration and synchronization of business cycles in East Asia

Cited by 54 publications

References 3 publications

The impact of the global financial crisis on business cycles in Asian emerging economies

The impact of the global financial crisis on business cycles in Asian emerging economies

Accounting for the economic relationship between Japan and the Asian Tigers

Business Cycles in the Maghreb : Does Trade Matter?

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