Campus Units

Economics

Document Type

Article

Publication Version

Accepted Manuscript

Publication Date

6-2003

Journal or Book Title

Journal of Asian Economics

Volume

14

Issue

3

First Page or Article ID Number

419

Last Page

434

DOI

10.1016/S1049-0078(03)00035-6

Abstract

This study examines the role of aggregate and disaggregate shocks in a small open economy, Korea. Variation in the growth rates of industrial output is decomposed into portions attributable to aggregate, industry group, and sector-specific shocks. Although all types of shocks play a role, sectoral shocks are the dominant source of sectoral output fluctuations. While aggregate shocks are a significant source of sectoral and aggregate output fluctuations, they are no more important than in large industrialized economies that have been studied previously. Consequently, small open economies may not be any more susceptible to aggregate disturbances than are the G-7 countries.

JEL Classification

E32, O53

Comments

This is a manuscript of an article published as Kang, Gi Choon, and Peter F. Orazem. "The relative importance of aggregate and disaggregate shocks in Korean business cycles." Journal of Asian Economics 14, no. 3 (2003): 419-434. doi:10.1016/S1049-0078(03)00035-6

Copyright Owner

Elsevier Inc.

Language

en

File Format

application/pdf

Published Version

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