TY - JOUR
T1 - A structural decomposition of business cycles in Taiwan
AU - Chang, Koying
AU - Filer, Larry
AU - Ying, Yung Hsiang
PY - 2002
Y1 - 2002
N2 - The purpose of this paper is to examine the influence of foreign and domestic factors on the business cycle of Taiwan. Using a structural vector-autoregressive model of a small open economy (OE), we examine how the influences of these factors differ as a result of trade flows and liberalization efforts. The results suggest that Taiwanese output has remained quite immune to global shocks in spite of the financial liberalization of the 1980s. Furthermore, as Asia has become Taiwan's major trading partner, so too has Asia become the major foreign influence on Taiwan's business cycle. Indeed, in many ways Taiwan appears to have gained resilience from foreign shocks, rather than forfeited domestic stability.
AB - The purpose of this paper is to examine the influence of foreign and domestic factors on the business cycle of Taiwan. Using a structural vector-autoregressive model of a small open economy (OE), we examine how the influences of these factors differ as a result of trade flows and liberalization efforts. The results suggest that Taiwanese output has remained quite immune to global shocks in spite of the financial liberalization of the 1980s. Furthermore, as Asia has become Taiwan's major trading partner, so too has Asia become the major foreign influence on Taiwan's business cycle. Indeed, in many ways Taiwan appears to have gained resilience from foreign shocks, rather than forfeited domestic stability.
KW - Business cycles
KW - Taiwan
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U2 - 10.1016/S1043-951X(01)00059-1
DO - 10.1016/S1043-951X(01)00059-1
M3 - Article
AN - SCOPUS:0036100475
SN - 1043-951X
VL - 13
SP - 53
EP - 64
JO - China Economic Review
JF - China Economic Review
IS - 1
ER -