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Economic integration and regional business cycles: Evidence from the Iberian regions

Salvador Barrios () and Juan de Lucio ()

No 2002073, LIDAM Discussion Papers CORE from Université catholique de Louvain, Center for Operations Research and Econometrics (CORE)

Abstract: This paper provides evidence of the positive impact of economic integration on EU regions' business cycles convergence by focusing on two neighbouring countries: Spain and Portugal. We show that while a rise in cross-country business cycle correlation has also been experienced by other European countries, it has been relatively more pronounced for Iberian regions.Econometric evidence suggests that the existence of an administrative border, the economic size of regions and their industrial structures can explain a substantial proportion of regional cycles.

Keywords: economic integration; business cycles; European regions; border effect; Spain; Portugal (search for similar items in EconPapers)
JEL-codes: E32 F15 R11 (search for similar items in EconPapers)
Date: 2002-12
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Journal Article: Economic Integration and Regional Business Cycles: Evidence from the Iberian Regions (2003) Downloads
Working Paper: Economic integration and regional business cycles: evidence from the Iberian regions (2003) Downloads
Working Paper: Economic Integration and Regional Business Cycles: Evidence from the Iberian regions Downloads
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