Trade intensity and business cycle synchronization: East Asia versus Europe
AbstractThis paper provides a comparative analysis of the relationship between trade intensities and synchronization of business cycles in East Asia and Europe (EU-15). It extends the work of Shin and Wang (2004, 2005) by providing a comparative perspective between East Asia and Europe. The paper finds that intra-industry trade, rather than inter-industry trade, is the major factor in explaining business cycle co-movements in both regions. The paper also supports the hypothesis that the relationship between trade intensity and output co-movement is stronger in East Asia than in Europe. The major policy implication of this finding is that East Asia needs to further strengthen macroeconomic policy coordination within the region.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Asian Economics.
Volume (Year): 23 (2012)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/asieco
Economic integration; Trade intensity; Intra-industry trade; Business cycle synchronization; East Asia;
Find related papers by JEL classification:
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
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