Foreign and Domestic Shocks

Macroeconomic Responses of ASEAN-3 Countries

Research output: Contribution to journalArticle

7 Citations (Scopus)

Abstract

The study provides new empirical evidence on the relative importance of foreign and domestic shocks on selected ASEAN-3 (Malaysia, Indonesia, and Thailand) macroeconomic variables. Three structural vector auto regression models are estimated for each country. The focal point is given on the formulation of the sources of foreign factors. The first model uses trade-weighted foreign variables of both US and Japan to represent the foreign factors. The other two models use US and Japan by themselves, respectively, to represent the foreign factors. Two important results are emerged. First, foreign sectors play an important role in influencing macroeconomic variables of each of the ASEAN-3 country, especially in the medium and the long-run horizon. Second, most of the time, the Japanese factors are more dominant than the US factors in influencing domestic output and inflation for each of the ASEAN-3 countries.

Original languageEnglish
Pages (from-to)215-237
Number of pages23
JournalGlobal Economic Review
Volume42
Issue number3
DOIs
Publication statusPublished - Sep 2013

Fingerprint

ASEAN
macroeconomics
Japan
foreign trade
inflation
Thailand
Indonesia
Malaysia
regression
evidence
Macroeconomic shocks
Factors

Keywords

  • foreign shocks
  • monetary policy
  • Structural vector autoregressive (SVAR) model

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)
  • Business and International Management
  • Political Science and International Relations

Cite this

Foreign and Domestic Shocks : Macroeconomic Responses of ASEAN-3 Countries. / Zaidi, Mohd Azlan Shah; Abdul Karim, Zulkefly; Azman-Saini, W. N W.

In: Global Economic Review, Vol. 42, No. 3, 09.2013, p. 215-237.

Research output: Contribution to journalArticle

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