Macroeconomic Interdependence Between Mainland China and Taiwan: A Cross-Strait Perspective on Globalization
Macroeconomic interdependence between China and Taiwan is assessed in terms of an array of output, price, money, and stock price measures for each economy. Sizeable simple correlations between these variables are accompanied by significant bidirectional Granger causality in many cases. Further evidence of interdependence arises from impulse response and variance decomposition analysis. As expected, the effects of mainland China variables on Taiwan appear to be stronger than the reverse. The indicated responses of the Taiwanese M2 money supply to developments in China are particularly noteworthy as M2 was generally the central bank target variable over the sample period.
Volume (Year): 42 (2009)
Issue (Month): 1 (January)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=110901 |
When requesting a correction, please mention this item's handle: RePEc:mes:chinec:v:42:y:2009:i:1:p:5-39. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)The email address of this maintainer does not seem to be valid anymore. Please ask Chris Nguyen to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.