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Globalization Versus Segregation - Business Cycles Synchronization In Europe

Author

Listed:
  • Sebastian Florian Enea

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Silvia Palaºcã

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract

Globalization and business cycles are equally elusive economic phenomena; hence they represent a continuous research possibility and a source of possible inquiries due to their complex nature. The aim of the paper is to explain the synchronization of business cycles using the relationship between the growth rate of the GDP and FDI, considered as percentage of the GDP. The results show that there is no unique European business cycle, but two cores between which countries migrate and stress out the importance of the FDI channel in business cycle transmission. The future research d irections will employ fuzzy cluster techniques, used on a larger sample.

Suggested Citation

  • Sebastian Florian Enea & Silvia Palaºcã, 2012. "Globalization Versus Segregation - Business Cycles Synchronization In Europe," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(4), pages 668-692, December.
    • Handle: RePEc:jes:wpaper:y:2012:v:4:i:4:p:668-692
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    More about this item

    Keywords

    real convergence; financial convergence; economic and financial crises; EMU Romania;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles

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