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Cyclical fluctuations in the Mediterranean basin

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  • Canova, Fabio
  • Ciccarelli, Matteo

Abstract

We investigate the similarities of macroeconomic fluctuations in the Mediterranean basin and their convergence. A model with three indicators, covering the West, the East and the MENA portions of the Mediterranean, characterizes well the historical experience since the early 1980. Convergence and divergence coexist in the region and are reversible. Except for the West, domestic cyclical fluctuations are still due to national and idiosyncratic causes. The outlook for the next few years looks rosier for the MENA and the East blocks than for the West. JEL Classification: C11, C33, E32

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Bibliographic Info

Paper provided by European Central Bank in its series Working Paper Series with number 1367.

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Date of creation: Aug 2011
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Handle: RePEc:ecb:ecbwps:20111367

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Keywords: Bayesian methods; business cycles; developing and developed countries; Mediterranean basin;

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