Business cycle convergence and trade: Brazil and China in a changing world

Julimar da Silva Bichara, Sandro Eduardo Monsueto (sandro.monsueto@gmail.com), André Moreira Cunha and Marcos Tadeu Caputi Lélis

Journal of Economic Policy Reform, 2016, vol. 19, issue 1, 39-64

Abstract: The recent economic interaction between Latin America and Asia, particularly between Brazil and China, has attracted the attention of the academic world that seeks to understand the effects of this approach in terms of business cycle convergence, economic structure and development trajectory. This paper contributes to this debate, presenting new evidence about the type and quality of this relationship. Our results reveal that Brazil and China present different patterns of relationship between trade and productive specialization: while Brazil has an intra-industry trade pattern, China has an inter-industry trade pattern. We explore some normative implications and future research possibilities.

Date: 2016
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DOI: 10.1080/17487870.2015.1031231

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