Understanding the distinction between the responses of Newly Industrialized Asian Economies and ASEAN Economies to foreign and domestic output shocks within the New Keynesian framework via a Small Open Economy Vector Error Correction Model (VECM)
Date of Publication
2014
Document Type
Bachelor's Thesis
Degree Name
Bachelor of Science in Applied Economics
Subject Categories
Economics
College
Ramon V. Del Rosario College of Business
Department/Unit
Economics
Defense Panel Chair
Lawrece Dacuycuy
Defense Panel Member
Dickson Lima
Ruperto Majuca
Abstract/Summary
Theoretically acceptable and empirically coherent economic modelling has been a problem in open economy macroeconomics. In an attempt to address this problem, Dungey and Vehbi (2011), grounded by New Keynesian assumptions, developed a Structural Vector Error Correction Model. We apply this theory-consistent SVECM to Newly Industrialized Asian Economies and ASEAN economies to identify foreign and domestic output shocks and determine whether these shocks are permanent or temporary. We also examine the responses of each economy to the relevant shocks identified by the model and assess which foreign-generated shock have the most impact via impulse response analysis and historical decomposition. The dataset is composed of macroeconomic variables of Newly Industrialized Asian Economies, ASEAN economies and their biggest trade partners from 1986Q1-2012Q4. The empirical results we have produced suggest the advancement of deeper economic integration and trade liberalization in East Asia. We observe that NIAEs are better in taking advantage of the full long run impact of foreign output stocks, reflective of their high degree of openness, while US-generated output shocks continue to have the most pronounced effect in Asian economies
Abstract Format
html
Language
English
Format
Accession Number
TU20042
Shelf Location
Archives, The Learning Commons, 12F, Henry Sy Sr. Hall
Physical Description
101 leaves ; 28 cm.
Keywords
Southeast Asia--Economic conditions; Currency question; Business cycles; Vector analysis
Recommended Citation
Joaquin, A. B., Leachon, R. V., Manansala, J. P., & Reyes, S. C. (2014). Understanding the distinction between the responses of Newly Industrialized Asian Economies and ASEAN Economies to foreign and domestic output shocks within the New Keynesian framework via a Small Open Economy Vector Error Correction Model (VECM). Retrieved from https://animorepository.dlsu.edu.ph/etd_bachelors/10606
Embargo Period
12-15-2021
