Furuoka, Fumitaka and Ling, Pui Kiew and Chomar, Ma Tin and Nikitina, Larisa (2023) Trade openness and the Phillips curve: Evidence from ASEAN countries. Singapore Economic Review, 68 (06). pp. 1891-1915. ISSN 0217-5908, DOI https://doi.org/10.1142/S0217590820500599.
Full text not available from this repository.Abstract
A flattening of the Phillips curve in recent decades has attracted a considerable interest of researchers and central bankers. As trade openness might be among the main causes of this phenomenon, this study puts forward a testable `openness-Phillips curve' hypothesis. Two methods - a static and a dynamic approaches - were employed to test the hypothesis by estimating slope coefficients of the new Keynesian Phillips curve (NKPC) and hybrid NKPC in ten ASEAN countries. A notable empirical finding is that in the periods of a higher trade openness, the Phillips curve tended to be flatter in the close economies and steeper in the open economies. These findings have some economic and political implications. The main one is that central banks in the ASEAN countries where the flattening of the Phillips curve takes place would not be able to employ the Phillips curve as an effective policy tool. Besides, countries with high inflation and unemployment rates could face some political uncertainty.
| Item Type: | Article |
|---|---|
| Funders: | Tun Ismail Ali Chair (TIAC) Research Grant (TIACRG2018.23) |
| Uncontrolled Keywords: | New Keynesian Phillips curve; openness; monetary policy; ASEAN |
| Subjects: | H Social Sciences > HB Economic Theory |
| Divisions: | Faculty of Economics & Administration Faculty of Languages and Linguistics Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute Faculty of Arts and Social Sciences |
| Depositing User: | Ms. Juhaida Abd Rahim |
| Date Deposited: | 26 May 2025 03:19 |
| Last Modified: | 26 May 2025 03:19 |
| URI: | http://eprints.um.edu.my/id/eprint/51061 |
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