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International Transmission of Medium-Term Technology Cycles: Evidence from Spain as a Recipient Country

Author

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  • Correa-López Mónica

    () (Economic Research Department, BBVA Research)

  • de Blas Beatriz

    () (Dpto. A.E.: Teoría e Historia Económica, Universidad Autónoma de Madrid)

Abstract

This paper documents stylized facts of international medium-term business cycles by exploring the pattern of comovement between a catching-up economy, Spain, and each of the obvious candidate countries to technological leadership of the 1950-2010 period, the U.S., France, Germany, Italy and the U.K. A remarkable feature of the international medium-term business cycle is the strong, positive lead displayed by the U.S. cycles of technology and international relative prices over Spain's macroeconomic aggregates. The corresponding evidence when the counterpart to Spain is a large European economy is weaker, particularly in the case of Europe's medium-term technology cycles. The vehicles that facilitate the international transmission of U.S. medium-term cycles are based on both bilateral trade and FDI linkages. International medium-term business cycle models may need to incorporate mechanisms relying on both embodied technical change and international relative prices to explain the observed stylized features.

Suggested Citation

  • Correa-López Mónica & de Blas Beatriz, 2012. "International Transmission of Medium-Term Technology Cycles: Evidence from Spain as a Recipient Country," The B.E. Journal of Macroeconomics, De Gruyter, vol. 12(1), pages 1-52, November.
    • Handle: RePEc:bpj:bejmac:v:12:y:2012:i:1:n:32
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    Cited by:

    1. Jasper de Winter & Siem Jan Koopman & Irma Hindrayanto & Anjali Chouhan, 2017. "Modeling the business and financial cycle in a multivariate structural time series model," DNB Working Papers 573, Netherlands Central Bank, Research Department.

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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