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Macroeconomic Integration in Asia-Pacific: Common Stochastic Trends and Business Cycle Coherence

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  • Enzo Weber

Abstract

: This paper addresses the question of macroeconomic integration in the Asia-Pacific region. Economically, the analysis is based on the notions of stochastic long-run convergence and business cycle coherence. The econometric procedure consists of tests for cointegration, the examination of vector error correction models, different variants of common cycle tests and forecast error variance decompositions. Results in favor of cyclical synchrony can be partly established, and are even exceeded by the broad evidence for equilibrium relations. In this domain, several leading countries have been identified.

Suggested Citation

  • Enzo Weber, 2009. "Macroeconomic Integration in Asia-Pacific: Common Stochastic Trends and Business Cycle Coherence," The IUP Journal of Applied Economics, IUP Publications, vol. 0(3-4), pages 84-106, May-July.
  • Handle: RePEc:icf:icfjae:v:08:y:2009:i:3-4:p:84-106
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    Cited by:

    1. Enzo Weber, 2012. "Regional and outward economic integration in South-East Asia," Applied Economics, Taylor & Francis Journals, vol. 44(10), pages 1271-1283, April.
    2. Jahan, Sumbul, 2013. "Does Convergence Exist?," MPRA Paper 48836, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F15 - International Economics - - Trade - - - Economic Integration
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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