institute of developing economies discussion papers are preliminary materials circulated to stimulate discussions and critical comments abstract against the background increasing regional trade investment there is growing interest in monetary macroeconomic policy coordination east asia although a sizable literature on linkages among asian countries potential merit region existing studies tend examine these issues exclusively terms variables do not consider how aggregate influenced by one prominent feature number their heavy dependence electronics industry active engagement global has been powerful growth engine for it also left vulnerable cyclical fluctuations world market as cycle exerts profound impacts medium term dynamics imperative take an explicit account its influence when studying way which linked another this relationship can be altered specific initiative we illustrate importance point
