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

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

*Bijbehorende auteur voor dit werk

OnderzoeksoutputAcademicpeer review

152 Citaten (Scopus)
235 Downloads (Pure)

Samenvatting

This paper re-examines the relationship between trade intensity and business cycle synchronization for 21 OECD countries in the period 1970-2003. Instead of using instrumental variables, we estimate a multivariate model including variables capturing specialization and similarity of economic policies. We confirm that trade intensity affects synchronization, but the effect is much smaller than previously reported. Other factors, like specialization and convergence in monetary and fiscal policies, have a similar impact on business cycle synchronization as trade intensity. The effect of trade on synchronization is not driven by outliers. However, the impact of trade on synchronization is not robust across deciles. (C) 2007 Elsevier B.V. All rights reserved.

Originele taal-2English
Pagina's (van-tot)646-666
Aantal pagina's21
TijdschriftEuropean Economic Review
Volume52
Nummer van het tijdschrift4
DOI's
StatusPublished - mei-2008

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