Dynamics of structural transformation and business cycle synchronization: a panel quantile regression approach for India

Aakanksha Shrawan and Amlendu Dubey

Applied Economics, 2023, vol. 55, issue 52, 6170-6186

Abstract: Recent contributions to the business cycle literature point towards the presence of potential nonlinearities in the relationship between similarities in sectoral composition of countries and their bilateral business cycle synchronization. By using a dynamic indicator of structural change (as opposed to the traditional static indicators), this article attempts to identify whether the similarities in the evolution of structural change across countries influence their bilateral business cycle synchronization heterogeneously across quantiles. With focus on India and its advanced and developing trade partners, this article employs the quantile regression model with non-additive fixed effects to assess this relationship. While India and its advanced countries' trade partners display a homogeneous and positive relationship between the similarity in evolution of agriculture and industry and their bilateral business cycle synchronization, there exists a homogeneously negative relationship with respect to the service sector. Similarities in the evolution of the industry and the service sector between India and its developing trade partners, on the other hand, have a heterogeneous impact on their bilateral business cycle synchronization.

Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1080/00036846.2022.2141461 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:taf:applec:v:55:y:2023:i:52:p:6170-6186

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036846.2022.2141461

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().