Business Cycle Synchronization in the Enlarged EU

Zsolt Darvas and György Szapáry

No 604, Working Papers from Department of Mathematical Economics and Economic Analysis, Corvinus University of Budapest

Abstract: This paper analyzes the synchronization of business cycles between new and old EU members using various measures. The main findings are that Hungary, Poland and Slovenia have achieved high degree of synchronization for GDP, industry and exports, but not for consumption and services. The other CEECs have achieved less or no synchronization. There has been significant increase in synchronization of GDP and its major components within EMU. This lends support to the argument of OCA endogeneity but there is also evidence of a world cycle. The consumption-correlation puzzle remains, but its magnitude has greatly diminished in the EMU members.

Keywords: business cycle synchronization; consumption-correlation puzzle; EMU; new EU members; OCA endogeneity (search for similar items in EconPapers)
JEL-codes: E32 F41 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2006-12-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

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http://web.uni-corvinus.hu/matkg/working_papers/wp_2006_4_darvas_szapary.pdf (application/pdf)

Related works:
Journal Article: Business Cycle Synchronization in the Enlarged EU (2008)
Working Paper: Business Cycle Sychronization in the Enlarged EU (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:mkg:wpaper:0604

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