Trade Integration and Business Cycle Synchronization in the Euro Area: The Case of Southern European Countries

Sofia Gouveia and Leonida Correia ()

Journal of Economic Integration, 2013, vol. 28, 85-107

Abstract: This paper examines synchronization in the euro area and the role of intra-EMU trade from 1981 to 2011, focusing in particular on southern European countries. The results indicate that the intensification of synchronisation that occurred in the nineties across almost all countries could partially be explained by the increase in trade, which has been strengthened since the start of the run-up to the EMU. For southern European economies, the results are mixed. We find also that trade imbalances have grown over time, becoming more evident in the common currency period. Furthermore, we document a positive and significant relationship between intra-EMU trade linkages and cyclical correlations.

Keywords: Business Cycle; Synchronisation; Trade; European Integration; Southern Europe (search for similar items in EconPapers)
JEL-codes: E32 F15 F41 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0593

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