Business cycle co-movements across countries have been widely documented, and East Asian economies show no exception. We reevaluate a Bayesian estimated two-country real business cycle model with non-sequentially traded intermediates and a New Keynesian model that incorporates simple vertical...

This paper revisits the hypothesis that globalization may weaken central bank's monetary control by analyzing the potential effect of vertically globalized production structure that increasingly permeates the international production process on domestic macroeconomic dynamics under the foreign...

This short note as the first study investigates the symmetry of fluctuations of underground output around trend for four selected Southeast Asian countries, that is, Malaysia, Indonesia, Thailand, and Philippines, over the time horizon of 1970-2006. In particular, we test if the underground...

Through a finite-lived dynamic stochastic general equilibrium (DSGE) model comprising bubbly capital with fixed supply, one-period gestation lag, and a cash-in-advance constraint, we show that a money-accommodated but not price-accommodated technological shock can trigger excessive movement in...

Should Asia feel anxious about China's expansion? We look for the answer through the Bayesian estimation of a two-country New Keynesian model of production fragmentation covering ten Asian economies, including China. The estimates show that vis-à-vis China, the developed Asia has a more...

In view of Malaysia's status as a fast-growing economy with accelerating carbon dioxide emissions, a better understanding of the relationship between economic growth and pollution is vital to the policy makers. This paper, therefore, attempts to investigate the existence of long run relationship...

Environmental degradation has become a central issue of discussion among the economists and environmentalists. In view of Malaysia's position as one of the main contributors to CO2 emissions in Asia and its status as a fast growing economy, it is vital, therefore, to conduct a study to identify...