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Business Cycle Fluctuations in Mediterranean Countries (1960-2000)

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  • MARCO GALLEGATI
  • MAURO GALLEGATI
  • WOLFGANG POLASEK

Abstract

This paper examines business cycle characteristics of Mediterranean countries using a set of macroeconomic aggregates (GDP and demand components, money, and prices) for fifteen Mediterranean countries over the 1960-2000 period. We analyze the main properties of business cycle fluctuations (persistence, volatility, asymmetry, and synchronization) and suggest that there are various regularities in the characteristics of business cycles of countries that are similar in their stage of development and/or geographical contiguity. Moreover, we investigate if comovements in aggregate time series are robust; that is, if they are common to various countries belonging to different economic levels of development, but that are geographically contiguous and with economic and historical linkages. We find similarities in terms of comovements and periodicity with respect to the GDP for consumption and investment among the aggregate demand components and, to a lesser degree, the price level and the inflation rate. On the other hand, differences among developed and developing countries of the Mediterranean region emerge, as both trade balance and policy variables are procyclical in many developing countries. Such findings may reflect the characteristics of policy making in developing countries and those countries' dependence on world demand in international trade.

Suggested Citation

  • Marco Gallegati & Mauro Gallegati & Wolfgang Polasek, 2004. "Business Cycle Fluctuations in Mediterranean Countries (1960-2000)," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 40(6), pages 28-47, November.
  • Handle: RePEc:mes:emfitr:v:40:y:2004:i:6:p:28-47
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    References listed on IDEAS

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    Cited by:

    1. Dionysios K. Solomos & Dimitrios N. Koumparoulis, 2013. "Financial Sector and Business Cycles Determinants in the EMU: An Empirical Approach (1996-2011)," European Research Studies Journal, European Research Studies Journal, vol. 0(2), pages 34-58.
    2. Bassam M. AbuAl-Foul & Mohamed Soliman, 2008. "Foreign Direct Investment and LDC Exports: Evidence from the MENA Region," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 44(2), pages 4-14, March.
    3. Almeida, Pedro Cameira de & Fuinhas, José Alberto & Marques, António Cardoso, 2011. "A assimetria dos ciclos económicos: Evidência internacional usando o teste triples
      [The asymmetry of business cycles: International evidence using triples test]
      ," MPRA Paper 35208, University Library of Munich, Germany.
    4. Chakrabarti, Anindya S., 2016. "Stochastic Lotka–Volterra equations: A model of lagged diffusion of technology in an interconnected world," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 442(C), pages 214-223.
    5. Chakrabarti, Anindya S., 2015. "Stochastic Lotka-Volterra equations: A model of lagged diffusion of technology in an interconnected world," IIMA Working Papers WP2015-08-05, Indian Institute of Management Ahmedabad, Research and Publication Department.
    6. Sagi Akron, 2011. "Market Reactions to Dividend Announcements Under Different Business Cycles," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 72-85, November.
    7. Bassam M. AbuAl-Foul & Mohamed Soliman, 2008. "Foreign Direct Investment and LDC Exports: Evidence from the MENA Region," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 44(2), pages 4-14, March.
    8. Sagi Akron, 2011. "Market Reactions to Dividend Announcements Under Different Business Cycles," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 47(0), pages 72-85, November.
    9. Solomos, Dionysios & Papageorgiou, Theofanis & Koumparoulis, Dimitrios, 2012. "Financial Sector and Business Cycles Determinants in the EMU context: An Empirical Approach (1996-2011)," MPRA Paper 43858, University Library of Munich, Germany.

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