 Trade, finance, specialization and synchronization in the Asia-PacificShihan Xie, Tianyin Cheng and Wai-Mun Chia Journal of the Asia Pacific Economy, 2013, vol. 18, issue 2, 253-270 Abstract: In this paper, we examine the relationship between trade, finance, specialization and output synchronization of 12 Asia-Pacific economies by studying the direct and indirect effects of increasing trade and financial integration on output synchronization. Using cross-sectional data for the periods of 1984–1996 and 1999–2007, we estimate a system of equations accounting for both endogeneity and simultaneity. Our main findings suggest that: (1) trade and financial integration has direct positive effects, while specialization has direct negative effects on output correlations. An increase in the coefficient of trade intensity and the significance of financial integration is observed in the post-Crisis period. (2) Most estimated coefficients have signs consistent with the existing literature and the results remain robust under different measures of output correlation, but a notable difference is that trade and finance have sizable positive effects on specialization; however, specialization is not a driving force of trade. (3) Countries with more variance in exchange rates have less synchronized cycles. Date: 2013 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:18:y:2013:i:2:p:253-270 Ordering information: This journal article can be ordered from DOI: 10.1080/13547860.2013.778160 Access Statistics for this article Journal of the Asia Pacific Economy is currently edited by Leong Liew More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.