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Measuring the dynamics of APEC output connectedness
Author(s) -
Ogbuabor Jonathan E.,
Eigbiremolen God’stime O.,
Aneke Gladys C.,
Charles Manasseh O.
Publication year - 2018
Publication title -
asian‐pacific economic literature
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.232
H-Index - 21
eISSN - 1467-8411
pISSN - 0818-9935
DOI - 10.1111/apel.12218
Subject(s) - social connectedness , china , economics , financial crisis , asia pacific , international economics , monetary economics , business , economy , macroeconomics , geography , psychology , archaeology , psychotherapist
We examine the dynamics of output connectedness of Asian Pacific Economic Cooperation (APEC) economies using time‐varying, region‐specific, generalised connectedness measures. We find that the connectedness of APEC economies with the rest of the world is quite substantial, with the 2008–09 Global Financial Crisis increasing the connectedness measures above their precrisis levels. The USA, China, and Korea are shown to be systemically important and to dominate APEC’s real activities, while outside the APEC region the roles of India and the UK are also non‐negligible. These results suggest that the majority of APEC economies are considerably open to output shocks from the dominant economies such that policymakers in APEC must be continuously conscious of headwinds originating from these sources.