We invite postgraduate students to submit an extended abstract of maximum 1500 characters by June 20 2012. Only one author per submission can be nominated as the ‘presenting author’. Please note that all presenters must register for the conference.
Guideline for Extended Abstract
- A title
- Name, affiliation, phone number and email addresses for all authors
- The purpose and motivation of the study
- The design or methodology of the study
- Summary of results
- Implication of the study
- Originality of the study
Interdependence of Income between China and ASEAN-5 Countries
Evan LAUa and LEE Koon Pob
aDepartment of Economics, Faculty of Economics and Business,
Universiti Malaysia Sarawak (UNIMAS),
94300 Kota Samarahan, Sarawak, Malaysia.
b UMW Corporation Sdn. Bhd (Oil & Gas)
Suite 3A, Level 18, Plaza Sentral,
Jalan Stesen Sentral 5,
50470 Kuala Lumpur, Malaysia
Purpose – The purpose of the paper is to empirically examine the interdependence of income between China and ASEAN-5 countries by using the real GDP. Besides answering this important policy question, we are also interested in ascertaining the causal direction between China and the ASEAN-5 income.
Design/methodology/approach – We resort to the standard time series econometrics analysis. These include the unit root, cointegration and the Granger causality tests in order to test the causal interplay and interdependence of income between ASEAN-5 and China for the estimation period from 1960 to 2003 obtained from the Penn World Table (PWT) 6.2 (Heston et al, 2006).
Findings – Empirical results are found to support the strong interdependence of income between China and ASEAN-5 countries. Further, the causality experiment suggest that China is the key factor in connecting (equilibrium point) the ASEAN-5 region, where China in one-way or another marks the resemblance of the income amongst this economies.
Originality/value – The paper is of value by showing to uncover the issue of interdependence of income especially in developing countries. With the increasing interest of economic integration around the globe especially the China-ASEAN Free Trade Area (CAFTA), the interdependence and synchronization movements of income between member countries is an important characteristic for suitability toward the regional common currency goal.
Keywords: Interdependence, cointegration, China, ASEAN-5