Economic Linkages among the Northeast Asian Economies

Abstract

This paper considers the linkages of the East Asian economies by means of a multi country Johansen type econometric model. The Intra country and cross country Impact on GDP, employment, Import, capital accumulation, Interest rate and consumption as a result of changes In technical change, wage rate, export and standard monetary and fiscal Instruments were estimated. Furthermore, the model enables the conduct of simulations in assessing the formation of free trade area among the northeast Asian economies and trade liberalizing measures granted from one trade bloc to another.