Economic Interdependence: Evidence from China and ASEAN-5 Countries

• Main Authors: Balasubramaniam, Arunnan, Puah, Chin Hong, Shazali, Abu Mansor
• Format: Article
• Language: English
• Published: Scientific Research Publishing 2012
• Subjects: H Social Sciences (General)
• Online Access: http://ir.unimas.my/id/eprint/18015/1/Arunnan.pdf; http://ir.unimas.my/id/eprint/18015/; http://dx.doi.org/10.4236/me.2012.31017

This study aimed to examine the interdependence relationship among five Association of Southeast Asian Nations (ASEAN-5) countries (Indonesia, Malaysia, the Philippines, Singapore, and Thailand) and China from a business cycles perspective. The Granger non-causality test proposed by [1] was used to examine causal linkages in business cycles. The empirical results indicated common business cycles between China and ASEAN-5 economies. This suggested that China and ASEAN-5 share similar business cycles and could complement each other in the long run. A discussion of important insights for regional economic policy coordination in which similar business cycles provide a platform for common regional trade, as well as suggestions for monetary policies, conclude the paper.