Did Output Recover from the Asian Crisis?
26 Pages Posted: 15 Feb 2004
Date Written: March 2003
This paper investigates the extent to which output has recovered from the Asian crisis. A regime-switching approach that introduces two state variables is used to decompose recessions in a set of six Asian countries into permanent and transitory components. While growth recovered fairly quickly after the crisis, there is evidence of permanent losses in the levels of output in all of the countries studied.
Keywords: Asia, crisis, business cycles, recovery, Indonesia, Hong Kong, Korea, Malaysia, Philippines, Singapore
JEL Classification: F39, F41, F42, F49, C32, G15
Suggested Citation: Suggested Citation