Business cycles in Korea: Is there any stylized feature?

Abstract

Seeks to present the detailed empirical study of contemporary business fluctuations in Korea. Follows the methodology of modern business cycle research in conducting an atheoretical statistical analysis of the cyclical properties of key aggregate time series. Shows, by analysis, that many of the cyclical regularities documented for developed countries also exist in Korean business cycles. Regularities include the relative volatilities of many expenditure components and the co‐movement of real and nominal variables with output. Particularly of note is the counter‐cyclicality of prices. Posits that counter‐cyclicality of prices signals the importance of supply side shocks in Korean business fluctuations. Reveals, in the analysis, that the fluctuation in the import price of oil may have been the major source of Korean business cycles. States that analysis has also revealed that there are some idiosyncrasies in Korean business cycles. Net exports are significantly pro‐cyclical and lead the cycle for most of the period under study.

Citation

Kim, K. and Choi, Y. (1997), "Business cycles in Korea: Is there any stylized feature?", Journal of Economic Studies, Vol. 24 No. 5, pp. 275-293. https://doi.org/10.1108/01443589710175807