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The global effects of productivity gains in Asian emerging economies
Institution:1. Faculty of Economics, Chulalongkorn University, Bangkok, Thailand;2. Department of Econometrics and Business Statistics, Monash University, Victoria, Australia;1. School of Economics and Management, Beihang University, Beijing, 100191, China;2. College of Business, University of Nevada, Reno, Reno, NV 89557, USA;1. School of Data Sciences, Zhejiang University of Finance and Economics, Hangzhou, Zhejiang, 310018, PR China;2. Department of Statistics, The University of British Columbia, Vancouver, BC, Canada;1. School of Economics and Finance, Xi’an Jiaotong University, Shaanxi, China;2. Business School, University of Jinan, China;3. Finance Research Institute, Shandong Collaborative Innovation Center for Capital Market Innovation and Development, University of Jinan, China;1. Zhongnan University of Economics and Law, Wuhan, 430073, Hubei, China;2. Zhejiang University of Finance & Economics, Hangzhou, China;3. School of Economics and Management, China University of Geosciences, Wuhan, 430074, China;4. College of Economics and Management, Huazhong Agricultural University, Wuhan, 430073, Hubei, China;1. Accident Compensation Corporation, Wellington, New Zealand;2. School of Economics, Finance and Marketing, RMIT University, Building 80, Level 11, 445 Swanston Street, Melbourne, VIC 3000, Australia
Abstract:This paper investigates international responses of key macroeconomic variables to simultaneous shocks to productivity in the traded sector in eight Asian emerging and developing countries. We use panel estimation techniques to construct component sub-models in a thirty country global vector autoregressive (GVAR) model. We identify the shocks by using sign restricted impulse responses. We find that increases in traded-sector productivity in Asian emerging and developing countries have a positive effect on economic growth and international trade for most countries.
Keywords:International linkages  Traded-nontraded productivity differential  Openness  Global vector autoregressive models  Sign restrictions
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