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

Robert Inklaar, Richard Jong-A-Pin () and Jakob de Haan

European Economic Review, 2008, vol. 52, issue 4, 646-666

Abstract: 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.

Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (187)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0014-2921(07)00060-8
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Trade and Business Cycle Synchronization in OECD Countries - a Re-examination (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:52:y:2008:i:4:p:646-666

Access Statistics for this article

European Economic Review is currently edited by T.S. Eicher, A. Imrohoroglu, E. Leeper, J. Oechssler and M. Pesendorfer

More articles in European Economic Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().