Business Cycle Synchronization in Asia: The Role of Financial and Trade Linkages

Yuwen Dai ()
Additional contact information
Yuwen Dai: Asia–Pacific Economic Cooperation, Postal: 35 Heng Mui Keng Terrace, Singapore 119616

No 139, Working Papers on Regional Economic Integration from Asian Development Bank

Abstract: In this research project, we attempt to examine the behavior of business cycles in Asia in order to deepen our understanding of and expand research on this topic. Given the importance of the People’s Republic of China, Japan, and the United States in the region economy, we use these three economies as our “reference countries” to study the synchronization of their business cycles with other Asian economies of interest. In particular, we investigate the potential determinants underlying the synchronization of their business cycles, including trade linkages, financial linkages, and policy similarities. From our panel data analysis, we find empirical evidence of the impacts of trade channels, financial channels, and policy channels in determining the degree of their business cycle synchronization.

Keywords: business cycle synchronization; macro interdependence; trade integration; financial integration; interest rate; fiscal balance; policy coordination; Asia; NIE-4; ASEAN-4; PRC; Japan; US; panel data analysis (search for similar items in EconPapers)
JEL-codes: E30 E32 F00 F15 F36 F42 F44 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-10-01
New Economics Papers: this item is included in nep-mac and nep-sea
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://aric.adb.org/pdf/workingpaper/WP139_Dai_Bus ... _Synchronization.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:adbrei:0139

Access Statistics for this paper

More papers in Working Papers on Regional Economic Integration from Asian Development Bank Contact information at EDIRC.
Bibliographic data for series maintained by Ivan B. de Leon ().