Accounting for the economic relationship between Japan and the Asian Tigers

Hideaki Hirata, Keisuke Otsu

Research output: Contribution to journalArticle

2 Citations (Scopus)


This paper applies the business cycle accounting method of Chari, Kehoe and McGrattan (2007) to a two-country, two-good model based on Backus, Kehoe and Kydland (1994) to investigate the economic relationship between Japan and the Asian Tigers from 1980Q1 to 2008Q2. We find that the main driver of long-run shifts and short-run fluctuations in output in each economy is domestic production efficiency. Furthermore, the recent increase in the cross-country business cycle correlation between the two can be attributed to an increase in the cross-country correlation of production efficiencies.

Original languageEnglish
Pages (from-to)57-68
Number of pages12
JournalJournal of The Japanese and International Economies
Publication statusPublished - 2016 Sep 1



  • Business cycle accounting
  • E13,;E32
  • F41
  • International business cycles
  • Productivity

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

Cite this