The effects of real and financial integration on output fluctuations in East Asia
نویسنده
چکیده
The paper analyzes how regional financial and trade integration have affected output fluctuations in East Asia. It also controls for possible effects of specialization patterns and exchange rate policies. The findings hint at a convergent direct effect of trade and FDI integration on output fluctuations. Real and financial integration also have sizable indirect effects on output fluctuations through their impact on each other, as well as on specialization. The overall effects are positive in both cases. Moreover, trade and FDI integration reduce specialization patterns, and exchange rate volatility has a very strong negative effect on trade for East Asian economies.
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تاریخ انتشار 2008