Trade Intensity and Business Cycle Synchronization: The Case of East Asia
Rana, Pradumna B. | June 2007
Abstract
This paper examines whether increasing trade intensity among East Asian countries has led to a synchronization of business cycles. It extends the work of Shin and Wang (2004) in two ways: by (i) improving the specification of their business cycle correlation equation, and (ii) extending the sample to cover the period after the Asian financial crisis. The study finds that intra-industry trade, rather than inter-industry trade, is the major factor explaining business cycle co-movements in East Asia, with important implications for the prospects for a single currency in the region.
Citation
Rana, Pradumna B.. 2007. Trade Intensity and Business Cycle Synchronization: The Case of East Asia. © Asian Development Bank. http://hdl.handle.net/11540/1854. License: CC BY 3.0 IGO.Keywords
Financial Stability
Financial Management System
Financial Restructuring
Capital Market Development
Erosion
Market Development
Economics
Erosion
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http://hdl.handle.net/11540/1854Metadata
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