Decoupling Asia Revisited

Publication | January 2017

This paper investigates the channels of growth spillovers and estimates the degree of macroeconomic interdependence between emerging East Asia and G3 economies.

First, it examines the progress of regional economic integration which has positively impacted the business cycle comovements both intraregionally and interregionally. Second, with the People’s Republic of China playing a central role in the regional production network, its ongoing structural changes will likely influence Asia’s trade patterns and economic integration. Finally, findings from vector autoregression model estimation suggest that the United States economy remains an important source of external demand shock for emerging East Asia, although the impact of the People’s Republic of China has increased sharply.


  • Tables and Figures
  • Abstract
  • Introduction
  • Literature Review: Economic Integration and Business Cycle
  • Business Cycle Synchronization in Asia
  • Financial Integration and Spillovers
  • Conclusion
  • Appendix
  • References

Additional Details

  • Industry and trade
  • Regional cooperation and integration
  • China, People's Republic of
  • WPS178597-2
  • 2313-6537 (Print)
  • 2313-6545 (e-ISSN)

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