earticle

영어

To measure spillover caused by Japan's quantitative easing(hereafter QE) this study focus the effects of macro variables on Korea, Busan, Ulsan and Gyeongnam respectively. For empirical specification we extend VAR(vector autoregressive, hereafeter VAR) model to regional framework and estimate Rolling VAR to capture spillover changes. In particular, we normalize the estimates to spillover indices, which is suggested by Dieblod and Yilmaz (2012). The estimates provide that spillover with regional economy is synchronized with the global business cycle, but does not represent a rapid transition impact as policy changes in advanced economy including Japan.　It is implied that the greater influence of major regional industry accounts for a high proportion of Korea economy. Above all, our empirical results confirms increased association of the other countries policy changes and regional economy.