Medium Term Business Cycles in Developing Countries

Diego Comin, Norman Loayza (), Farooq Pasha and Luis Servén

American Economic Journal: Macroeconomics, 2014, vol. 6, issue 4, 209-45

Abstract: We study the transmission of business cycle fluctuations for developed (N ) to developing economies (S ) with a two-country, asymmetric, DSGE model with endogenous development of new technologies in N, and sunk costs of exporting and transferring the production of the intermediate goods to S. Consistent with the data, the flow of technologies from N to S co-moves positively with output in N and S; shocks to N have a large effect on S; business cycles in N lead over medium term fluctuations in S; the cross-correlation of outputs is larger than consumption; and interest rates in S are countercyclical.

JEL-codes: E13 E32 F14 F21 F32 O19 O33 (search for similar items in EconPapers)
Date: 2014
Note: DOI: 10.1257/mac.6.4.209
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: Medium Term Business Cycles in Developing Countries (2011)
Working Paper: Medium Term Business Cycles in Developing Countries (2010)
Working Paper: Medium Term Business Cycles in Developing Countries (2009)
Working Paper: Medium-term business cycles in developing countries (2009)
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