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Investigating the Cyclical Properties of World Trade

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Author Info
Monika Ruschinski
Abstract

The world economy in the last two decades is clearly marked by the integration of emerging countries in the international division of labor. To better understand the “globalization” effect, it is helpful to analyze the pattern and structure of world trade volume in the past, in order to draw conclusions for future development. An unobserved components model is used for decomposing world trade volume into trend, cycle, seasonal and irregular components. The analyses show that the process of the world trade volume is driven by the well-known fluctuations in form of the “Kitchin” and “Juglar Cycle”. Furthermore, there is one more cycle with a period between 4 and 5 years which improves the estimation results significantly. The information of the cyclical behavior of the time series is used for projections.

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Publisher Info
Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper No. 30.

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Date of creation: 2006
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Handle: RePEc:ces:ifowps:_30

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Related research
Keywords: World trade; economic integration; unobserved components model; forecasting.;

Find related papers by JEL classification:
F02 - International Economics - - General - - - International Economic Order; Noneconomic International Organizations;; Economic Integration and Globalization: General
F17 - International Economics - - Trade - - - Trade Forecasting and Simulation

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This page was last updated on 2009-11-28.


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