Dynamics of Business Cycles in Asia: Differences and Similarities

42 Pages Posted: 21 Jun 2000

See all articles by Sunghyun Henry Kim

Sunghyun Henry Kim

Sungkyunkwan University - Department of Economics

M. Ayhan Kose

World Bank; Brookings Institution; Centre for Economic Policy Research (CEPR); Australian National University (ANU)

Michael G. Plummer

Brandeis University - International Business School

Multiple version iconThere are 2 versions of this paper

Date Written: May 2000

Abstract

This paper documents the extent of similarities and differences of business cycle characteristics of the Asian countries and compares the cyclical regularities in this region with those of the G7 countries. The Asian economies are generally more volatile than the G7 countries, but the amplitude of economic fluctuations in the Asian countries tends to decrease over time. Comovement and persistence properties of business cycles in the Asian countries are very similar to those of the G7 economies. We find that while the patterns of business cycle fluctuations in the main macroeconomic aggregates display important similarities, the behavior of fiscal and monetary policy variables exhibits significant differences across the Asian countries. Moreover, there is a high degree of comovement between the individual country business cycles and our measures of the Asian business cycle, indicating that there is a regional business cycle specific to the Asian countries. These results provide important insight into the short-run macroeconomic dynamics, as well as to the region's long-run economic policy objectives.

JEL Classification: E32, F40, F41, O53

Suggested Citation

Kim, Sunghyun Henry and Kose, M. Ayhan and Plummer, Michael G., Dynamics of Business Cycles in Asia: Differences and Similarities (May 2000). Available at SSRN: https://ssrn.com/abstract=229625 or http://dx.doi.org/10.2139/ssrn.229625

Sunghyun Henry Kim

Sungkyunkwan University - Department of Economics ( email )

110-745 Seoul
Korea

M. Ayhan Kose (Contact Author)

World Bank

1818 H Street, NW
Washington, DC 20433
United States

Brookings Institution

1775 Massachusetts Ave, NW
Washington, DC 20036
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Australian National University (ANU)

Canberra, Australian Capital Territory 2601
Australia

Michael G. Plummer

Brandeis University - International Business School ( email )

Mailstop 32
Waltham, MA 02454-9110
United States

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