IDEAS home Printed from
   My bibliography  Save this paper

Business Cycle Synchronization in the East Asian Economies


  • Xulan Yu
  • Yoshihiko Tsukuda


The paper examines the possibility of financial cooperation by investigating the business cycle synchronization among the eight core East Asian countries(China, Japan, Korea, Indonesia, Malaysia, the Philippines, Singapore, and Thailand) using the logarithm of per capita real GDP data from 1994Q1 to 2005Q3. The paper employs the model of multivariate time series analysis developed by Engle and Kozicki (1993) and Vahid and Engle (1993). The empirical study reveals that the per capita real GDP series in the region have 2 cointegration vectors in the long-run and 4 cofeature vectors in the short-run dynamics. In other words, the GDP series in the region share 6 common stochastic trends in the long run and 4 common business cycles in the short run. The result indicates that the East Asian countries satisfy an important precondition for creating the financial cooperation in the higher levels.

Suggested Citation

  • Xulan Yu & Yoshihiko Tsukuda, 2007. "Business Cycle Synchronization in the East Asian Economies," TERG Discussion Papers 225, Graduate School of Economics and Management, Tohoku University.
  • Handle: RePEc:toh:tergaa:225

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:toh:tergaa:225. 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: (Tohoku University Library). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.