A factor analysis of trade integration : The case of Asian and Oceanic economies

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

1 Scopus Citations
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Author(s)

Detail(s)

Original languageEnglish
Pages (from-to)5-23
Journal / PublicationEconomie Internationale
Volume119
Issue number3
Publication statusPublished - 2009
Externally publishedYes

Abstract

We study trade integration among fifteen selected Asian and Oceanic economies using factor models. The principal component approach is employed to extract the common factor that drives trade integration from bilateral trade integration series. It is found that the estimated common trade integration factor has strong seasonal and deterministic components. In accordance with theory, the common trade integration factor is significantly associated with the economic growth and the trade barriers of the fifteen economies. However, we find no evidence that the common trade integration factor is affected by foreign direct investment. The basic model is extended to incorporate an ASEAN factor that affects trade integration among the ASEAN economies in our sample.

Research Area(s)

  • ASEAN, Factor model, Growth, Principal component, Trade barriers

Citation Format(s)

A factor analysis of trade integration : The case of Asian and Oceanic economies. / Cheung, Yin-Wong; Yiu, Matthew S.; Chow, Kenneth K.

In: Economie Internationale, Vol. 119, No. 3, 2009, p. 5-23.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review