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Trade Shocks and Resiliency

In: China and ASEAN: Pivoting Trade and Shock Transmission

Author

Listed:
  • Mala Raghavan

    (University of Tasmania)

  • Faisal Khan

    (University of Tasmania)

  • Evelyn S. Devadason

    (University of Malaya)

Abstract

The third chapter presents a formal vector autoregressive (VAR) model for the empirical assessment of output shocks of China on ASEAN6 (Malaysia, Singapore, Thailand, the Philippines, Indonesia, and Viet Nam) based on its overall trade interdependence and its linkages through trade in intermediate goods and consumption goods. A comparative perspective is taken in this chapter, that is, shocks emanating from China are distinguished from direct shocks from the ASEAN region, and indirect shocks from the other extra regional trade partners to provide context on the extent of influence of China on ASEAN6 relative to the latter two groups. It contributes to the policy discussion on the transmission of output shocks to ASEAN by identifying the significance of (changing) trade interdependencies in the propagation of those shocks, and the significance of different trade channels in disseminating output shocks.

Suggested Citation

  • Mala Raghavan & Faisal Khan & Evelyn S. Devadason, 2021. "Trade Shocks and Resiliency," Springer Books, in: China and ASEAN: Pivoting Trade and Shock Transmission, chapter 0, pages 23-61, Springer.
  • Handle: RePEc:spr:sprchp:978-981-16-1618-1_3
    DOI: 10.1007/978-981-16-1618-1_3
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