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Business cycles in Korea: Is there any stylized feature?

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Author Info
Kunhong Kim
Yong-Yil Choi
Abstract

Seeks to present the detailed empirical study of contemporary business fluctuations in Korea. Follows the methodology of modern business cycle research in conducting an atheoretical statistical analysis of the cyclical properties of key aggregate time series. Shows, by analysis, that many of the cyclical regularities documented for developed countries also exist in Korean business cycles. Regularities include the relative volatilities of many expenditure components and the co-movement of real and nominal variables with output. Particularly of note is the counter-cyclicality of prices. Posits that counter-cyclicality of prices signals the importance of supply side shocks in Korean business fluctuations. Reveals, in the analysis, that the fluctuation in the import price of oil may have been the major source of Korean business cycles. States that analysis has also revealed that there are some idiosyncrasies in Korean business cycles. Net exports are significantly pro-cyclical and lead the cycle for most of the period under study.

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Publisher Info
Article provided by Emerald Group Publishing in its journal Journal of Economic Studies.

Volume (Year): 24 (1997)
Issue (Month): 5 (October)
Pages: 275-293
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Handle: RePEc:eme:jespps:v:24:y:1997:i:5:p:275-293

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Related research
Keywords: Business cycles; Economic conditions; Korea;

Cited by:
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  1. Hwee Kwan Chow & Keen Meng Choy, 2008. "Forecasting Business Cycles in a Small Open Economy: A Dynamic Factor Model for Singapore," Economic Growth centre Working Paper Series 0802, Nanyang Technolgical University, School of Humanities and Social Sciences, Economic Growth centre. [Downloadable!]
  2. Hwee Kwan Chow & Keen Meng Choy, 2009. "Analyzing and Forecasting Business Cycles in a Small Open Economy: A Dynamic Factor Model for Singapore," Working Papers 05-2009, Singapore Management University, School of Economics. [Downloadable!]
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