Hong Kong Output Dynamics: An Empirical Analysis

32 Pages Posted: 13 Jun 2022 Last revised: 15 Sep 2022

Multiple version iconThere are 2 versions of this paper

Date Written: December 1, 2000

Abstract

This working paper was written by Yin-Wong Cheung (University of California, Santa Cruz and Hong Kong Institute for Monetary Research).

Advanced statistical techniques are used to analyze Hong Kong output dynamics. Hong Kong, Japan and the U.S. are found to share some common long-term and short-term cyclical variations. While the Hong Kong economy is susceptible to external shocks and is “Granger-caused” by the other two economies, local factors account for a large proportion of output growth variability and are mainly responsible for output uncertainty. On the transmission mechanism, the selected trade and financial variables have incremental explanatory power but do not lessen the ability of domestic and foreign output variables to explain Hong Kong growth dynamics. Interestingly, the U.S. does not appear to exert undue influence on Hong Kong.

Keywords: Common Trends/Cycles, Transmission Mechanism, Structural Determinants

JEL Classification: E32, F42, C22

Suggested Citation

Institute for Monetary and Financial Research, Hong Kong, Hong Kong Output Dynamics: An Empirical Analysis (December 1, 2000). Pacific Economic Review, 7(3), 2002, pp. 465-487, Hong Kong Institute for Monetary and Financial Research (HKIMR) Research Paper WP No. 11/2000, Available at SSRN: https://ssrn.com/abstract=4131824

Hong Kong Institute for Monetary and Financial Research (Contact Author)

(HKIMR) ( email )

Units 1005-1011, 10th Floor, One Pacific Place
88 Queensway
Hong Kong
China

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

Paper statistics

Downloads
6
Abstract Views
158
PlumX Metrics