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Economic Integration and Regional Business Cycles: Evidence from the Iberian regions

Salvador Barrios () and Juan de Lucio ()

No 2001-17, Working Papers from FEDEA

Abstract: The present paper provides evidence on the impact of economic integration on EU regions' business cycles convergence by focusing on the Spanish and Portuguese experiences. We use quarterly as well as annual series on employment growth to show that the EU integration process has had a positive and significant influence on Iberian regional cycles' correlation. Econometric evidence suggests that the economic size of regions and their respective industrial structure can explain a substantial proportion of regional cycles. We also find that the estimates differ depending on the frequency of the data used. Both the border effect and industrial specialisation seem to have greater influence on the pattern of economic co-fluctuations when using annual rather than quarterly series.

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Related works:
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 (2002) Downloads
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