Dynamics of global business cycle interdependence

Lorenzo Ductor and Danilo Leiva-Leon ()

Journal of International Economics, 2016, vol. 102, issue C, 110-127

Abstract: In this paper, we provide a comprehensive analysis of the time-varying interdependence among the economic cycles of the major world economies during the post-Great Moderation period. We document a significant increase in the global business cycle interdependence occurred in the early 2000s. Such increase is mainly attributed to the emerging market economies, since their business cycles became more synchronized with the rest of the world around that time. Moreover, we find that the increase in global interdependence is highly related to decreasing differences in sectoral composition among countries.

Keywords: Business cycles; Markov-switching; Network analysis; Model uncertainty (search for similar items in EconPapers)
JEL-codes: C34 C45 E32 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

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Working Paper: Dynamics of Global Business Cycles Interdependence (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:inecon:v:102:y:2016:i:c:p:110-127

DOI: 10.1016/j.jinteco.2016.07.003

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