This paper examines the impact of international trade on business cycle comovement using a unique dataset of sectoral output and trade flows. While the earlier studies employing aggregate data are certainly useful in understanding the broad impact of trade linkages on the transmission of...

We examine the driving forces of G-7 business cycles. We decompose national business cycles into common and nation-specific components using a dynamic factor model. We also do this for driving variables found in business cycle models: productivity; measures of fiscal and monetary policy; the...