How Synchronized Is China with the Other Asia-Pacific Countries?

Bryant University Center for Global and Regional Economic Studies Working Paper No. 2013-14

31 Pages Posted: 27 Oct 2013

See all articles by Aziz Berdiev

Aziz Berdiev

Bryant University - Department of Economics

Chun-Ping Chang

Shih Chien University

Date Written: October 25, 2013

Abstract

We investigate the synchronization of growth cycles between China and 11 Asia-Pacific countries using quarterly data for the period 1993:2-2012:4. We employ a wavelet-based measure of comovement to examine the degree of business cycle synchronization in the time-frequency framework. While we find that the growth cycles of China is synchronized with the other Asia-Pacific economies, the strength of business cycle synchronization fluctuates significantly across time and frequencies. Our results also illustrate that the degree of comovement between the growth cycles varies across different country pairs in our time-frequency analysis. Overall, we find that the strength of business cycle synchronization between China and other Asia-Pacific countries has increased at long-run fluctuations, especially during and following the recent global financial crisis. We also observe a relatively low degree of comovement between the growth cycles of China and most Asia-Pacific economies almost at all frequencies during the Asian financial crisis. We thus emphasize the importance of examining the strength of business cycle synchronization in the time-frequency domain.

Keywords: Business cycle synchronization; Wavelet analysis; China; Asia-Pacific

JEL Classification: E30; E32; F44

Suggested Citation

Berdiev, Aziz and Chang, Chun-Ping, How Synchronized Is China with the Other Asia-Pacific Countries? (October 25, 2013). Bryant University Center for Global and Regional Economic Studies Working Paper No. 2013-14, Available at SSRN: https://ssrn.com/abstract=2345300 or http://dx.doi.org/10.2139/ssrn.2345300

Aziz Berdiev (Contact Author)

Bryant University - Department of Economics ( email )

RI
United States

Chun-Ping Chang

Shih Chien University

200 University Road
Ney-Nan Tsun
Kaohsiung, 845
Taiwan

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
54
Abstract Views
552
Rank
676,215
PlumX Metrics