Putting the Parts Together : Trade, Vertical Linkages, and Business Cycle Comovement

Trade, Vertical Linkages, and Business Cycle Comovement

Putting the Parts Together : Trade, Vertical Linkages, and Business Cycle Comovement
Countries that trade more with each other exhibit higher business cycle correlation. This paper examines the mechanisms underlying this relationship using a large cross-country industry-level panel dataset of manufacturing production and trade. We show that sector pairs that experience more bilateral trade exhibit stronger comovement. Vertical... READ MORE...

Publication date: August 2009
ISBN 9781451873283
$18.00

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