Trade Intensity and Business Cycle Synchronization: The Case of East Asia

Pradumna B. Rana ()
Additional contact information
Pradumna B. Rana: Asian Development Bank, Postal: 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines,, http://www.adb.org

No 10, Working Papers on Regional Economic Integration from Asian Development Bank

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.

Keywords: economic integration; trade intensity; intra-industry trade; business cycle synchronization; East Asia (search for similar items in EconPapers)
JEL-codes: F15 F42 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2007-06-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://aric.adb.org/pdf/workingpaper/WP10_Rana.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:0010

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 ().