Chapter 10 The Decoupling of Asia-Pacific?
The Evolving Role of Asia in Global Finance
ISBN: 978-0-85724-745-2, eISBN: 978-0-85724-746-9
Publication date: 8 March 2011
Abstract
Standard measures of business cycle comovement, based on correlation coefficients, are very sensitive to the phase of the business cycle, as well as to regional crises. Adjusting for these factors overturns the empirical result that Asia-Pacific economies are becoming decoupled from the United States over time. An alternative, intuitive, measure of business cycle comovement is proposed, based on the difference between output growth rates adjusted for its long-run average. The new measure suggests that Asia-Pacific economies are becoming more strongly coupled with the United States over time.
Keywords
Citation
Yetman, J. (2011), "Chapter 10 The Decoupling of Asia-Pacific?", Cheung, Y.-W., Kakkar, V. and Ma, G. (Ed.) The Evolving Role of Asia in Global Finance (Frontiers of Economics and Globalization, Vol. 9), Emerald Group Publishing Limited, Leeds, pp. 235-253. https://doi.org/10.1108/S1574-8715(2011)0000009015
Publisher
:Emerald Group Publishing Limited
Copyright © 2011, Emerald Group Publishing Limited