Spatiotemporal Impact of Trade Policy Variables on Asian Manufacturing Hubs: Bayesian Global Vector Autoregression Model

A novel spatiotemporal framework using diverse econometric approaches is proposed in this research to analyze relationships among eight economy-wide variables in varying market conditions. Employing Vector Autoregression (VAR) and Granger causality, we explore trade policy effects on emerging manufacturing hubs in China, India, Malaysia, Singapore, and Vietnam. A Bayesian Global Vector Autoregression (BGVAR) model also assesses interaction of cross unit and perform Unconditional and Conditional Forecasts. Utilizing time-series data from the Asian Development Bank, our study reveals multi-way cointegration and dynamic connectedness relationships among key economy-wide variables. This innovative framework enhances investment decisions and policymaking through a data-driven approach.