Trade integration and business cycle convergence: Is the relation robust across time and space?

Abbott, Andrew; Easaw, Joshy; Xing, Tao

Abstract

In this paper we investigate the relationship between trade intensity and the business cycle correlation using a panel data set taken from 24 countries over the period 1959-2003. Most previous studies did not account for the possibility that the business cycle correlation may be influenced by unobservable country-pair specific effects. Our estimates, using both fixed- and random-effects methodologies, suggest that trade intensity and the business cycle correlation are positively related to one another. However, detailed investigation shows that this relationship exists mainly for the European countries. © 2008 the editors of the Scandinavian Journal of Economics.

Citation

Abbott, A., Easaw, J., & Xing, T. (2008). Trade integration and business cycle convergence: Is the relation robust across time and space?. Scandinavian Journal of Economics, 110(2), 403-417. https://doi.org/10.1111/j.1467-9442.2008.00539.x

• Journal Article Type: Article
• Acceptance Date: Oct 1, 2007
• Online Publication Date: Jul 21, 2008
• Publication Date: Jul 21, 2008
• Deposit Date: Nov 13, 2014
• Journal: Scandinavian Journal Of Economics
• Print ISSN: 0347-0520
• Electronic ISSN: 1467-9442
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 110
• Issue: 2
• Pages: 403-417
• DOI: https://doi.org/10.1111/j.1467-9442.2008.00539.x
• Keywords: Economics and Econometrics
• Public URL: https://hull-repository.worktribe.com/output/466267
• Publisher URL: https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1467-9442.2008.00539.x