Does International Trade Synchronize Business Cycles?
AbstractThis paper studies the relationship between international trade and output fluctuations. The authors find evidence that the business cycles of countries that are more open to international trade are more likely to by synchronized with the business cycles of their major trading partners. A detailed study of the South Korean case shows that while business cycles are related to openness, the diversification of export destinations seems to weaken these links. The authors find no relationship between openness and output volatility.
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Bibliographic InfoPaper provided by Monash University, Department of Econometrics and Business Statistics in its series Monash Econometrics and Business Statistics Working Papers with number 8/99.
Length: 22 pages
Date of creation: Jun 1999
Date of revision:
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Postal: PO Box 11E, Monash University, Victoria 3800, Australia
Web page: http://www.buseco.monash.edu.au/depts/ebs/
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Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- F49 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Other
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- NEP-ALL-2002-04-25 (All new papers)
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