| ID | 156463 |
| Title Proper | Impact of intra-industry trade on business cycle synchronization in East Asia |
| Language | ENG |
| Author | Li, Linyue |
| Summary / Abstract (Note) | This paper empirically analyzes distinctions between intra- and inter-industry trade indices. The research indicates that the co-movements of business cycles are influenced more through the intra-industry trade channel than by the total volume of trade itself. As trade integration among Asian countries increased, business cycle synchronization among these countries was expected to expand through trade transmission. Inter-industry trade resulting in higher specialization will induce less synchronized business cycles, while intra-industry trade could lead to increased business cycle synchronization. Moreover, I find that increased business cycle synchronization, as one of the optimum currency area criteria, is overemphasized. |
| `In' analytical Note | China Economic Review , No.45; Sep 2017: p.143-154 |
| Journal Source | China Economic Review 2017-09 |
| Key Words | Intra-Industry Trade ; Correlations ; Business Cycle Synchronization |