Intra-industry trade and business cycles in ASEAN

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Intra-industry trade and business cycles in ASEAN

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dc.contributor.author Cortinhas, Carlos en_GB
dc.contributor.department The Economic Policy Research Unit (NIPE), now Exeter University en_GB
dc.date.accessioned 2008-09-12T10:41:49Z en_GB
dc.date.accessioned 2011-01-25T10:25:53Z en_US
dc.date.accessioned 2013-03-19T15:53:41Z
dc.date.issued 2007-04 en_GB
dc.description.abstract A new resolve for both increased economic integration and monetary and exchange rate cooperation has started to emerge in the Association of Southeast Asian Nations (ASEAN), especially since the 1997-1998 Asian financial crisis. According to the optimum currency area theory, the degree of trade integration is one of the most important criteria for joining a currency union. The large increase in intra-ASEAN trade in recent years raises the question of whether the ASEAN countries are becoming better prepared to form a currency union. This article sets to test whether the recorded increase in intra-ASEAN trade is leading the ASEAN members to closer economic integration and thus to better satisfy the criteria for a common currency. Two separate models are estimated for that purpose. First, a variation of the model of Frankel and Rose (1997) was estimated for the ASEAN members. Next, a new panel data methodology was conducted. The results with our own model were very significant and robust when four of the ASEAN5 countries were considered, and showed a clear positive correlation between intra-industry trade and business cycle synchronization in ASEAN. This result has important implications for the prospects of the creation of a common currency in the region. en_GB
dc.identifier.doi 10.1080/00036840500461907 en_GB
dc.identifier.uri http://hdl.handle.net/10036/37693 en_GB
dc.language.iso en en_GB
dc.publisher Routledge en_GB
dc.relation.url http://www.informaworld.com/smpp/content~db=all?content=10.1080/00036840500461907 en_GB
dc.relation.url http://www3.eeg.uminho.pt/economia/nipe/docs/2005/NIPE_WP_7_2005.pdf en_GB
dc.subject Intra-Industry Trade en_GB
dc.subject Business Cycle Harmonization en_GB
dc.subject Economic Integration en_GB
dc.subject ASEAN en_GB
dc.title Intra-industry trade and business cycles in ASEAN en_GB
dc.type Article en_GB
dc.date.available 2008-09-12T10:41:49Z en_GB
dc.date.available 2011-01-25T10:25:53Z en_US
dc.date.available 2013-03-19T15:53:41Z
dc.identifier.issn 00036846 en_GB
dc.identifier.issn 14664283 en_GB
dc.description An earlier version of this paper appeared as NIPE Working paper 7/2005; the final published version is available at http://www.informaworld.com/ en_GB
dc.identifier.journal Applied Economics en_GB


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