Work

Re-examining international spillovers: An Asian perspective

Year: 2024

Type: article

Abstract: This study investigates the transmission and the business cycle implications of Chinese export shocks to other Asian economies. Based on a panel vector autoregression (PVAR) model, we provide evidence that a positive export shock originating from China simultaneously stimulates aggregate demands for both China and other Asian economies. The PVAR model takes into account three main sources of potential interactions among ten Asian economies. Simulations from a two-country DSGE model featuring endogenous trade links suggest that positive trade spillover is essential to explain the macroeconomic comovement pattern. Our findings further indicate the importance of the Chinese economy to business cycle synchronization.

Source: International Review of Economics & Finance

DOI: 10.1016/j.iref.2024.103581

Authors: Georgios Magkonis, Simon Rudkin, Shuonan Zhang

Institutions: University of Portsmouth, University of Manchester, University of Southampton

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,790

OpenAlex ID: W4403147935

FWCI: 0.72

Cites: 38

Cited by: 2

Related to: 10