Table 4 presents the correlation coefficients between the fitted values of growth rates in the
precrisis (January 1989–June 1997) and postcrisis periods (July 1997–December 2004). The data
confirm that correlation of industrial production between all possible pairs of East Asian
countries has increased in the postcrisis period as compared with the precrisis period. They are
high and statistically significant from zero in country combinations involving Indonesia, Japan,
Korea, Malaysia, Philippines, Singapore, and Thailand. The PRC appears to be the only outlier—
its growth correlations with the sample countries are statistically insignificant.13
With respect to the correlations between East Asia and US GDP growth the VAR analysis
suggests that correlations increased, except in Korea and the Philippines. The correlations are,
however, low and statistically insignificant.
Table 4 presents the correlation coefficients between the fitted values of growth rates in the
precrisis (January 1989–June 1997) and postcrisis periods (July 1997–December 2004). The data
confirm that correlation of industrial production between all possible pairs of East Asian
countries has increased in the postcrisis period as compared with the precrisis period. They are
high and statistically significant from zero in country combinations involving Indonesia, Japan,
Korea, Malaysia, Philippines, Singapore, and Thailand. The PRC appears to be the only outlier—
its growth correlations with the sample countries are statistically insignificant.13
With respect to the correlations between East Asia and US GDP growth the VAR analysis
suggests that correlations increased, except in Korea and the Philippines. The correlations are,
however, low and statistically insignificant.
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