Home

    About

    Open Access Repository

    SearchBrowse by ThemeBrowse by AuthorBrowse by TypeMost Popular Titles

    Other Resources

    Curators

    Events

    Contributing Think Tanks

    Networks

    Using Content

    FAQs

    Terms of Use

    13,800+ curated items from top Think Tanks.
    JavaScript is disabled for your browser. Some features of this site may not work without it.

    Home

    About

    Open Access Repository

    SearchBrowse by ThemeBrowse by AuthorBrowse by TypeMost Popular Titles

    Other Resources

    Curators

    Events

    Contributing Think Tanks

    Networks

    Using Content

    FAQs

    Terms of Use

    Measuring the Effects of Commodity Price Shocks on Asian Economies

    Inoue, Tomoo; Okimoto, Tatsuyoshi | March 2017
    Abstract
    Commodity prices have become volatile over the past 2 decades, and their recent sharp decline has decreased the consumer price index inflation rates for most economies. While many Asian economies have benefited from low international oil and food prices, commodity exporters have suffered. Thus, the negative impact on production through the decline of producer prices has attracted considerable attention. Given this situation, policy makers have become increasingly concerned about measuring the magnitude of oil and food price shock diffusion on a country’s various inflationary indicators. This study investigates this problem by using a Global Vector Autoregressive model. We extend the work by Galesi and Lombardi (2009), which primarily analyzed European economies using data from the pre-Global Financial Crisis (GFC) period, in the following four ways: (i) the sample period is extended to December 2015, thus covering the post-GFC turbulence period (beginning from January 2001); (ii) the model is enriched by considering the People’s Republic of China’s role in integrating the Asian region through international trade; (iii) the producer price index is included; and (iv) the impact on industrial production is investigated. Using generalized impulse response functions, we examine the impact of a one-time hike in oil and food prices on the general price levels and production for nine Asian countries and 13 other countries, including the United States and the eurozone. We also analyze the differences of shock propagations in the pre- and post-GFC periods. Results indicate that the increased integration and dependence on exports intensified the Asian region’s vulnerability to external shocks.
    Citation
    Inoue, Tomoo; Okimoto, Tatsuyoshi. 2017. Measuring the Effects of Commodity Price Shocks on Asian Economies. © Asian Development Bank Institute. http://hdl.handle.net/11540/7783.
    Keywords
    Government Policy
    Regional Organization
    Regional Plans
    Economic integration
    Regional Development Bank
    Preferential tariffs
    International negotiation
    Protectionist measures
    Access to markets
    Economic agreements
    International trade law
    Regional integration
    Trade relations
    Regionalism
    Regional Economy
    Regional Trading Arrangements
    Regional Trade Integration
    Regional Economic Integration
    Regional Cooperation
    Interregional Cooperation
    Trade Disputes
    Trade Barriers
    Regional economics
    Regional planning
    Regional disparities
    Interregionalism
    Regional economic disparities
    Regional economic blocs
    Industrial arbitration
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/7783
    Metadata
    Show full item record
    Thumbnail
    adbi-wp693.pdf (4.754Mb)
    Author
    Inoue, Tomoo
    Okimoto, Tatsuyoshi
    Theme
    Regional
    Trade
     
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise
    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise