A new assessment of economic integration in East Asia: Application of an industry-specific G-PPP model

IF 1.3 4区经济学 Q3 ECONOMICS

Japan and the World Economy Pub Date : 2021-12-01 DOI:10.1016/j.japwor.2021.101105

Kentaro Kawasaki , Kiyotaka Sato

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引用次数: 3

Abstract

It is well known that intra-industry trade and cross-border production networks have promoted economic growth and regional integration in East Asia. However, regional supply and production chains may have been formed differently across industries, reflecting different degrees and a different scope of regional economic linkages at an industry level. This paper makes a threefold contribution. First, to assess industry-level differences, this study adopts the generalized purchasing power parity (G-PPP) model using industry-specific producer prices. Second, the momentum threshold autoregressive (M-TAR) model is employed to allow for possible nonlinearity arising from the dynamic nature of regional economic growth and development. Third, the Granger causality test is also conducted to assess whether regional economies have autonomously integrated. The empirical results reveal that economic integration has progressed more autonomously in the electrical industry, as well as in the transportation equipment industry, as China and the ASEAN countries have become the final destination markets for finished products in these two industries.

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东亚经济一体化的新评估:基于特定行业的G-PPP模型

众所周知，产业内贸易和跨境生产网络促进了东亚的经济增长和区域一体化。然而，区域供应链和生产链在不同行业之间的形成可能不同，在行业层面上反映了不同程度和不同范围的区域经济联系。这篇论文有三方面的贡献。首先，为了评估行业层面的差异，本研究采用了基于特定行业生产者价格的广义购买力平价(G-PPP)模型。其次，采用动量阈值自回归(M-TAR)模型，考虑区域经济增长和发展的动态性可能产生的非线性。第三，运用格兰杰因果检验来评估区域经济是否自主整合。实证结果显示，随着中国和东盟国家成为电气行业和运输设备行业成品的最终目的地市场，经济一体化在这两个行业的发展更加自主。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Japan and the World Economy ECONOMICS-

CiteScore

2.60

自引率

0.00%

发文量

审稿时长

46 days

期刊介绍： The increase in Japan share of international trade and financial transactions has had a major impact on the world economy in general and on the U.S. economy in particular. The new economic interdependence between Japan and its trading partners created a variety of problems and so raised many issues that require further study. Japan and the World Economy will publish original research in economics, finance, managerial sciences, and marketing that express these concerns.