Convergence of income between Asean-5 and China
It is said that the People’s Republic of China plays an important role as a trading partner of ASEAN. This study examines convergence of income (using real GDP growth) between ASEAN-5 countries (namely Indonesia, Malaysia, the Philippines, Singapore and Thailand) and the People’s Republic of China f...
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| Main Author: | |
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| Format: | Final Year Project Report |
| Language: | English |
| Published: |
Universiti Malaysia Sarawak (UNIMAS)
2006
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| Online Access: | http://ir.unimas.my/id/eprint/7437/3/Lee%20Koon%20Po.pdf http://ir.unimas.my/id/eprint/7437/ |
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| Institution: | Universiti Malaysia Sarawak |
| Language: | English |
| Summary: | It is said that the People’s Republic of China plays an important role as a trading partner of ASEAN. This study examines convergence of income (using real GDP growth) between ASEAN-5 countries (namely Indonesia, Malaysia, the Philippines, Singapore and Thailand) and the People’s Republic of China for a period of 41 years of annually data from 1960 to 2000.
Four empirical methods are used in this research, namely correlation coefficient, the standard ADF test, the Johansen-Juselius Cointegration analysis to test the convergence hypothesis and the Granger Causality test.
Empirical results show that there are mutual relationship and correlation of real GDP growth between ASEAN-5 and the People’s Republic of China in the long run. From the finding using the Granger causality method, it is found out that ASEAN-5 countries are diverting their investments to the People’s Republic of China. |
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