Common Shocks and the Business Cycle in Asian Countries

by Shen, Hsien-lung

Abstract (Summary)
Since the Euro has founded in 1999, the Asian Currency has become an important issue. The most important prerequisite for adopting common currency for the countries in the area is the synchronization of business cycle. This paper analyses the degree and responses of business cycles for Asian countries when they face to the common shocks. The empirical findings from this paper can be summarized as follows. First, the shocks of Japanese economy are more important to Asian countries than the shocks from the United States, except for Thailand and Indonesia. Second, Malaysia and the Philippine are substantially influenced by the Thailand. Therefore, the Asian economy is evidently forming its regional (or bloc) economy continually. The findings from this paper are in the same line with the result from Hazel (2001), who concludes the business cycles of Japan and Korea are commoved. The degree of synchronization of business cycles for Thailand, Malaysia, and the Philippine are quite high as well.
Bibliographical Information:

Advisor:none; none; none

School:National Sun Yat-Sen University

School Location:China - Taiwan

Source Type:Master's Thesis

Keywords:vector autoregression common shocks business cycles asian currency


Date of Publication:08/09/2007

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