The impact of trade integration on business cycle co-movements in Europe

Kwanho Shin, Yunjong Wang

Research output: Contribution to journalArticle

12 Citations (Scopus)

Abstract

This paper extends our previous research on East Asia to the case of 14 European countries from 1977 to 1999. According to our empirical results, intraindustry trade is again the major channel through which the business cycles of European countries become synchronized. This contrasts with existing studies that found that increased trade itself led to the synchronization of business cycles. Our findings have important implications for the adoption of a currency union, as we expect that the costs of joining a currency union will diminish significantly only when intraindustry trade becomes dominant.

Original languageEnglish
Pages (from-to)104-123
Number of pages20
JournalReview of World Economics
Volume141
Issue number1
DOIs
Publication statusPublished - 2005 Apr 1

Fingerprint

Trade integration
Business cycles
Comovement
Intra-industry trade
Currency union
European countries
Costs
Empirical results
East Asia
Synchronization

Keywords

  • Business cycle co-movements
  • Europe
  • Trade integration
  • Trade intensity intraindustry trade

ASJC Scopus subject areas

  • Economics, Econometrics and Finance(all)

Cite this

The impact of trade integration on business cycle co-movements in Europe. / Shin, Kwanho; Wang, Yunjong.

In: Review of World Economics, Vol. 141, No. 1, 01.04.2005, p. 104-123.

Research output: Contribution to journalArticle

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