Resource title

Trade and business cycle synchronization in OECD countries : a re-examination

Resource image

image for OpenScout resource :: Trade and business cycle synchronization in OECD countries : a re-examination

Resource description

This paper re-examines the relationship between trade intensity and business cycle synchronization for 21 OECD countries during 1970-2003. Instead of using instrumental variables, we estimate a multivariate model including variables capturing specialisation, financial integration, and similarity of economic policies. We confirm that trade intensity affects business cycle synchronization, but the effect is much smaller than previously reported. Other factors in our model have a similar impact on business cycle synchronization as trade intensity. Finally, we find that the effect of trade on business cycle synchronisation is not driven by outliers and does not suffer from parameter heterogeneity.

Resource author

Robert Inklaar, Richard Jong-A-Pin, Jakob de Haan

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/19010

Resource license

Adapt according to the presented license agreement and reference the original author.