Trade in Intermediate Inputs and Business Cycle Comovement
AbstractDo cross-border input linkages transmit shocks and synchronize business cycles across countries? I integrate input trade into a dynamic many country, multi-sector model and calibrate the model to match observed bilateral input-output linkages. With estimated productivity shocks, the model generates an aggregate trade-comovement correlation 30-40% as large as in data, and 50-75% as large for the goods producing sector. With independent shocks, the model accounts for one-quarter of the trade-comovement relationship for gross output of goods. However, shocks transmitted through input linkages do not synchronize value added. And contrary to conventional wisdom, input complementarity does not amplify value added comovement.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 18240.
Date of creation: Jul 2012
Date of revision:
Note: IFM ITI
Contact details of provider:
Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Web page: http://www.nber.org
More information through EDIRC
Find related papers by JEL classification:
- F1 - International Economics - - Trade
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-29 (All new papers)
- NEP-BEC-2012-07-29 (Business Economics)
- NEP-DGE-2012-07-29 (Dynamic General Equilibrium)
- NEP-MAC-2012-07-29 (Macroeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Jörn Kleinert & Julien Martin & Farid Toubal, 2012.
"The Few Leading the Many: Foreign Affiliates and Business Cycle Comovement,"
2012-18, CEPII research center.
- Kleinert, Jörn & Martin, Julien & Toubal, Farid, 2012. "The Few Leading The Many: Foreign Affiliates and Business Cycle Comovement," CEPR Discussion Papers 9129, C.E.P.R. Discussion Papers.
- Jörn Kleinert & Julien Martin & Farid Toubal, 2012. "The few leading the many: foreign affiliates and business cycle comovement," Globalization and Monetary Policy Institute Working Paper 116, Federal Reserve Bank of Dallas.
- Luciana Juvenal, Luciana; Santos Monteiro, Paulo, 2011.
"Trade and Synchronization in a Multi-Country Economy,"
CAGE Online Working Paper Series
31, Competitive Advantage in the Global Economy (CAGE).
- Paulo Santos Monteiro & Luciana Juvenal, 2012. "Trade and Synchronization in a Multi Country Economy," 2012 Meeting Papers 59, Society for Economic Dynamics.
- Huang, Haifang & Tang, Yao, 2013. "How Did Exchange Rates Affect Employment in US Cities?," Working Papers 2013-7, University of Alberta, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.