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Comovements and Sectoral Interdependence: Evidence for Latin America, East Asia, and Europe

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Author Info
By Norman Loayza (International Monetary Fund)
Humberto Lopez (International Monetary Fund)
Angel Ubide (International Monetary Fund)

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Abstract

This paper analyzes common economic patterns across countries and economic sectors in Latin America, East Asia, and Europe for the period 1970–94 by means of an error-components model that decomposes real value-added growth in each country into common international effects, sector-specific effects, and country-specific effects. We find significant comovements in the European and East Asian samples. In the Latin American sample, however, we find country-specific components to be more important than common patterns. These results are robust to different sub-sample time spans and different sub-sample country groups. Copyright 2001, International Monetary Fund

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Publisher Info
Article provided by Palgrave Macmillan Journals in its journal IMF Staff Papers.

Volume (Year): 48 (2001)
Issue (Month): 2 ()
Pages: 7
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Handle: RePEc:pal:imfstp:v:48:y:2001:i:2:p:7

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E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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  1. Melisso Boschi & Aditya Goenka, 2006. "Habit formation and the transmission of financial crises," Economics Discussion Papers 608, University of Essex, Department of Economics. [Downloadable!]
  2. Jean Imbs, 2003. "Trade, Finance, Specialization, and Synchronization," IMF Working Papers 03/81, International Monetary Fund. [Downloadable!]
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