In this paper business cycle correlations between countries in the Asia-Pacific region are examined. A number of authors have suggested that trade intensity between pairs of countries increases business cycle synchronisation, though theoretically it is not clear that this should be the case. In...

We first confirm the interdependence of the United States and the Asia-Pacific region, and explore the real linkage through trade and investment, and the financial linkage through stock markets. These linkages are strengthened by the recent information technology (IT) revolution. The pairwise...