The Economic Performance of the European Union Issues, Trends and Policies Edited by Antonin Rusek Susquehanna University, USA Lubor Lacina Mendel University, Czech Republic Jarko Fidrmuc Ludwig-Maximilians-Universitat Munich, Germany palgrave macmiUan Contents List of Figures ...

This paper tests the endogeneity hypothesis of OCA criteria (Frankel and Rose, 1998) in a cross-section of OECD countries between 1990 and 1999. It is shown that intraindustry trade actually causes the convergence of business cycles, while there is no direct relation between business cycles and...