Interdependence of ASEAN Business Cycles

This paper examines the interdependence relationship of five ASEAN business cycles, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. We conducted an augmented VAR of Granger non-causality test and discovered that there is strong interdependence among the ASEAN countries under study....

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Bibliographic Details
Main Authors: Ong, Hway-Boon, Puah, Chin Hong, Muzafar Shah, Habibullah
Format: Article
Language:English
Published: FFE-ISAFE 2006
Subjects:
Online Access:http://ir.unimas.my/id/eprint/18674/
http://ir.unimas.my/id/eprint/18674/7/Interdependence%20of%20ASEAN%20Business%20Cycles%20%28abstract%29.pdf
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Summary:This paper examines the interdependence relationship of five ASEAN business cycles, namely, Indonesia, Malaysia, Philippines, Singapore and Thailand. We conducted an augmented VAR of Granger non-causality test and discovered that there is strong interdependence among the ASEAN countries under study. Our empirical findings revealed the existence of bi-directional causality among ASEAN countries, especially Malaysia and Singapore. That is to say, economic shocks or policy implementation by any neighbouring countries may be easily transmitted to another.