ME  Vol.3 No.1 , January 2012
Economic Interdependence: Evidence from China and ASEAN-5 Countries
ABSTRACT
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.

Cite this paper
A. Balasubramaniam, C. Puah and S. Mansor, "Economic Interdependence: Evidence from China and ASEAN-5 Countries," Modern Economy, Vol. 3 No. 1, 2012, pp. 122-125. doi: 10.4236/me.2012.31017.
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