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The Intranational Business Cycle: Evidence from Japan

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  • Michael Artis

    (Institute for Political and Economic Governance, Manchester University, UK)

  • Toshihiro Okubo

    (Research Institute for Economics & Business Administration (RIEB), Kobe University, Japan)

Abstract

This paper studies the intranational business cycle - that is the set of regional (prefecture) business cycles - in Japan. One reason for choosing to examine the Japanese case is that long time series and relatively detailed data are available. A Hodrick-Prescott filter is applied to identify the cycles in annual data from 1955 to 1995 and bilateral cross-correlation coefficients are calculated for all the pairs of prefectures. Comparisons are made with similar sets of bilateral cross correlation coefficients calculated for the States of the US and for the member countries of a "synthetic Euro Area" The paper then turns to an econometric explanation of the cross-correlation coefficients (using Fisher's z-transform), in a panel data GMM estimation framework. An augmented gravity model provides the basic model for the investigation, whilst the richness of the data base also allows for additional models to be represented.

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File URL: http://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/dp221.pdf
File Function: First version, 2008
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Bibliographic Info

Paper provided by Research Institute for Economics & Business Administration, Kobe University in its series Discussion Paper Series with number 221.

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Length: 49 pages
Date of creation: Jan 2008
Date of revision:
Handle: RePEc:kob:dpaper:221

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Keywords: Intranational business cycle; Hodrick-Prescott filter; Optimal Currency Area; Gravity Model; Market potential; Heckscher Ohlin theorem;

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References

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Citations

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Cited by:
  1. Jan Fidrmuc & Jarko Fidrmuc & Shuo Huang, 2013. "Whither China? Reform and Economic Integration among Chinese Regions," CESifo Working Paper Series 4220, CESifo Group Munich.
  2. Miankhel, Adil Khan & Kalirajan, Kaliappa & Thangavelu, Shandre, 2010. "Integration, decoupling and the global financial crisis: A global perspective," MPRA Paper 22837, University Library of Munich, Germany.
  3. Artis, Michael & Okubo, Toshihiro, 2009. "Globalization and business cycle transmission," The North American Journal of Economics and Finance, Elsevier, vol. 20(2), pages 91-99, August.
  4. Michael Artis & Toshihiro Okubo, 2009. "The UK Intranational Trade Cycle," SERC Discussion Papers 0019, Spatial Economics Research Centre, LSE.

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