Title

Is Greater China a currency union? A tale of the Chinese trio

Document Type

Journal Article

Publisher

Elsevier

Faculty

Business and Law

School

Accounting, Finance and Economics

RAS ID

5676

Comments

This article was originally published as: Zhang, Z., Sato, K., & McAleer, M. (2008). Is Greater China a currency union?: A tale of the Chinese trio. Mathematics and Computers in Simulation, 78(2), 319-327. Original article available here

Abstract

With the rapid flow of knowledge and capital from Hong Kong and Taiwan to Mainland China, a dynamic economy of “Greater China” has emerged, making the Chinese trio increasingly interdependent on trade and investment. In this paper we develop a three-variable VAR model to assess empirically the feasibility of forming a currency union in the Greater China area. The empirical results suggest that, from an economic perspective, it is feasible for the Chinese trio to move toward a currency union because of the increasing symmetry of shocks, the dynamic economic integration among the Greater China economies, and the speed of adjustment to shocks.

DOI

10.1016/j.matcom.2008.01.008

 

Link to publisher version (DOI)

10.1016/j.matcom.2008.01.008