China in the world economy: dynamic correlation analysis of business cycles

Jarko Fidrmuc, Iikka Korhonen and Ivana Bátorová

No 7/2008, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: We analyze the business cycles in China and in selected OECD countries between 1992 and 2006 using dynamic correlations. Nearly all OECD countries showpositive correlations of the very short-run developments which may correspond to intensive supplier linkages. However, dynamic correlations at the business cycle frequencies are negative. Countries facing a comparably longer history of intensive trading links tend to show slightly higher correlations of business cycles with China. Even though trade and financial flows do not really increase correlations of business cycles between China and OECD countries, they lower the degree of business cycle synchronization within the OECD area.

Keywords: Business cycles; synchronization; trade; FDI; dynamic correlation (search for similar items in EconPapers)
JEL-codes: E32 F15 F41 (search for similar items in EconPapers)
Date: 2008
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https://www.econstor.eu/bitstream/10419/212620/1/bofit-dp2008-007.pdf (application/pdf)

Related works:
Journal Article: China in the World Economy: Dynamic Correlation Analysis of Business Cycles (2013)
Working Paper: China in the World Economy: Dynamic Correlation Analysis of Business Cycles (2011)
Working Paper: China in the World Economy: Dynamic Correlation Analysis of Business Cycles (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2008_007

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