International co-movements and business cycle transmission between Korea and Japan

Selover, David D.

doi:10.1016/s0889-1583(03)00025-x

Cited by 20 publications

(25 citation statements)

References 23 publications

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“…We find that recent developments may have changed the relationship between Japan and South Korea. In particular, the impulse responses show that the Japanese overall output shock no longer affect South Korea, instead the South Korean overall output shock affects Japan in a significant manner. This result is contrary to Selover (2004)'s finding. When we look at the responses of individual sectors, the same type of asymmetry is also found.…”

Section: Introductioncontrasting

confidence: 99%

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Examining industrial interdependence between Japan and South Korea: A FAVAR approach

Selover

Yagihashi

2015

Japan and the World Economy

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This paper investigates the economic relationship between Japan and South Korea by incorporating disaggregated output measures. Using a factor-augmented vector autoregression (FAVAR) model, we conduct several experiments to test the nature of the interdependence, both in the aggregate and by sector. We find that South Korean output shocks affect the Japanese economy in a significant manner, whereas Japanese output shocks have a limited effect on South Korea. By further examining the transmission mechanism of sectoral output shocks and comparing them with the direction of sectoral trade, we find evidence of cross-border production sharing, which explains the asymmetric results seen in the aggregate output.

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Section: Introductioncontrasting

confidence: 99%

“…what is the current economic relationship between Japan and South Korea? Has it changed from the finding of Selover (2004)? Does vertical production linkage explain business cycle transmission between the two countries?…”

Section: Introductionmentioning

confidence: 99%

Examining industrial interdependence between Japan and South Korea: A FAVAR approach

Selover

Yagihashi

2015

Japan and the World Economy

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“…However, results from VAR estimations trying to capture the interaction between pairs of countries provide only weak evidence of business cycle transmission between ASEAN countries and between ASEAN and its major trading partners outside the region. In a related paper, Selover (2004) focuses more narrowly on the economic links between Japan and Korea using a structural VAR methodology. He finds that industrial production in the two Asian countries is moderately synchronised and that causation runs from Japan to Korea, but not vice versa.…”

Section: Chartmentioning

confidence: 99%

Business cycle synchronisation in East Asia

Moneta

Rüffer

2009

Journal of Asian Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in WO R K I N G PA P E R S E R I E S N O 6 7 1 / A U G U S T 2 0 0 6This paper can be downloaded without charge from http://www.ecb.int or from the Social Science Research Network C O N T E N T S Abstract 4Non-technical summary 5

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“…For example, Selover (2004) studied interdependence between Korea and Japan, and found that Japanese business cycles have a moderate effect on Korean ones. Zhang, Sato and McAleer (2004) studied a group of 10 Asian countries plus the US, compared estimates from the European Economic Community (EEC), and concluded that underlying structural shocks are less symmetrical in Asia.…”

Section: Literature Reviewmentioning

confidence: 99%

Macroeconomic interdependence in East Asia

Nagayasu

2010

Japan and the World Economy

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Abstract:This paper analyzes macroeconomic interdependence among 10 Asian economies. In this connection, we decompose their macroeconomic activities (real GDP) into common and country-specific components using the Bai-Ng method (2004). Our results suggest first that both components are nonstationary and have permanent effects on their overall economy. Second, we find the relative importance of common factors in all countries in terms of their contribution to variations in real GDP. But evidence is also obtained of country-specific effects becoming increasingly important in countries like China in recent years. Therefore, if, for example, China is expected to grow at a fast pace in future, our findings imply that creation of a regional monetary union of these 10 countries needs to be held back until the Chinese economy has become more dominant in the region. JEL classification: F4

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International co-movements and business cycle transmission between Korea and Japan

Cited by 20 publications

References 23 publications

Examining industrial interdependence between Japan and South Korea: A FAVAR approach

Examining industrial interdependence between Japan and South Korea: A FAVAR approach

Business cycle synchronisation in East Asia

Macroeconomic interdependence in East Asia

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