 Output Movements in East Asia: Is There a Regional Factor?Maria Socorro Gochoco‐Bautista
The World Economy, 2008, vol. 31, issue 6, 738-762 Abstract: Using Lumsdaine and Prasad's (2003) methodology to construct a measure of the common component of industrial output fluctuations with time‐varying weights, this study finds that there is a significant regional factor that explains the movement in industrial production output across countries in East Asia (ASEAN 5 + 3). The cumulated common component for East Asia has very distinct peaks and troughs, with turning points occurring about every three years. Shocks in 2000–2001, coinciding with the bursting of the IT bubble, appear to be very important as there is a very large decline in the common component of industrial production output, larger than that experienced during the 1997 Asian Financial Crisis. Similar to McKinnon and Schnabl's (2003) findings, the Japanese economy is important for the region as its industrial production output cycle has the largest weight in the construction of the cumulated common component for the region and appears to be the most similar to it. Nevertheless, China's asymmetry with the cumulated component for the region appears to have been beneficial for the region, especially in the most recent period. Date: 2008 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bla:worlde:v:31:y:2008:i:6:p:738-762 Ordering information: This journal article can be ordered from Access Statistics for this article The World Economy is currently edited by David Greenaway More articles in The World Economy from Wiley Blackwell |
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