| Summary: | The countries in the ASEAN-Pacific region sharply show a strong upward trend in many aspects of
their macroeconomic performance. However, exogenous international shocks can displace a developing
country from its long-run stationary growth path. This paper attempts to investigate the existence of
Endogenously Determined Structural Breaks of several aspects of economic development by using time
series annual data during the period from 1960s to 2000s for countries in ASEAN-Pacific
Region—Korea, Singapore, Thailand, Malaysia, Philippines and Indonesia. The paper will concentrate
on three different models—Additive Outlier Model, Innovational Outlier I Model and Innovational
Outlier II Model to scrutinize the existence of potential structural break points in the trend. The paper
considers four main indicators of macroeconomic development—Real GDP, Trading Openness,
Structure on Investment and Financial Growth,. The purpose of this paper is to demonstrate whether
those potential structural break points did affect the long-run growth in the trend of time series in the
ASEAN-Pacific Region. According to empirical estimation and regression, most of the results
demonstrate three possible structural break points in this region: around 1979 (oil crisis), around
mid-1980s (economic recession), and around 1997 (financial crisis). It shows through econometric
methods that the long-run stationarity of macroeconomic development in most selected countries is not
affected by these potential structural break points. Since this is mainly due to the successful adjustment
of economic policies, especially for trading and financial sectors, the positive adjustments of policies in
trading and financial sectors have been able to maintain long-run sustained growth of macroeconomic
development in ASEAN-Pacific regions. This paper concludes that the symbiotic relationship between
macro and micro economic variables has worked well in the region allowing for sustained growth in spite of exogenous shocks and structural breaks.
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