How Does Globalization Affect the Synchronization of Business Cycles? /

This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at best limited support for the conventional wisdom that globalization has increased the degree of synch...

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Detalhes bibliográficos
Autor principal: Kose, Ayhan
Outros Autores: Prasad, Eswar, Terrones, Marco
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 2003.
coleção:IMF Working Papers; Working Paper ; No. 2003/027
Acesso em linha:Full text available on IMF
Descrição
Resumo:This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at best limited support for the conventional wisdom that globalization has increased the degree of synchronization of business cycles. The evidence that trade and financial integration enhance global spillovers of macroeconomic fluctuations is stronger for industrial countries. One striking result is that, on average, cross-country consumption correlations have not increased in the 1990s, precisely when financial integration would have been expected to result in better risk-sharing opportunities, especially for developing countries.
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Descrição Física:1 online resource (14 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students