The synchronization of business cycles in East Asia and Pacific Region. A network approach
The synchronization of business cycles in East Asia and Pacific Region. A network approach

Summary/Abstract: The synchronization of business cycles is crucial for a proper functioning of currency unions, diversification opportunities in trade and finance etc. In an open economy it is almost impossible to isolate from situation in other countries when real and financial links are established. However, it is also very hard to find a country responsible for the facilitation of the transmission of economic shocks. In the article, the author analyzes the economic network formed within the East Asia and Pacific region with the aim to point those pairs of countries which are significantly connected and labels that countries with regard to the role they play in the business cycle synchronization. It seems that the biggest facilitator of such a synchronization is Indonesia, which gives rise to the role of involvement in international production chains.

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