This study readdresses the determinants of business cycle synchronisation. We test, on the one hand, whether FDI … of trade integration for the similarity of business cycles are less robust and thus less important for the transmission …

estimator. Results indicate that the trade channel is not as important as cross-section models suggest but that FDI may have the … Monetary Union as well as many other countries strives to attract foreign direct investment (FDI) because of its reputation as … being highly beneficial for the host economy. But stronger FDI linkages may also have a significant impact on business …

This study readdresses the determinants of business cycle synchronisation. We test, on the one hand, whether FDI … of trade integration for the similarity of business cycles are less robust and thus less important for the transmission …

. We also find greenfield FDI leads business cycle comovements. This may be due to deepening intra-industry trade and dense …We synthetically assess the three major transmission channels of international business cycles: bilateral trade …, foreign direct investment (FDI), and portfolio investment flows between economies with multiple fixed effects. Using the data …

correlation analysis to determine the stabilization effect of FDI. A positive correlation between national income and FDI of 78 ….87% was obtained, implying that FDI inflows are pro-cyclical. The correlation results have been consistent with the observed … trend of the transformed data. The pro-cyclicality nature of FDI inflows means that they follow the same trend with national …

This paper examines whether European integration, manifesting itself in increased trade and FDI linkages, new … model endogenous relationships and unveil direct and indirect effects. Trade and FDI prove to have a strong impact on …

with stronger FDI relations during 1995–2010, but that they are mainly associated with stronger trade linkages before 1995 … trade links are not. Our findings suggest that FDI has become a separate channel through which economies may affect each …This paper investigates the relationship between foreign direct investment (FDI) and business cycle synchronization in …

supports the argument that complementary outweighs the substitution effects of OFDI on exports of home country. Moreover, trade … openness is significantly influential on exports, which indicates the positive impact of trade liberalization. In addition …, currency fluctuations and inward FDI are also important factors for progressive home country exports. Originality/Value - The …

export growth. However, FDI seems to stabilize exports during the crisis while reaping its own benefits in all times ….With recent data from OECD countries, our new approach regarding FDI openness and diversification is introduced to draw some … important policy implications for stability in export growth, and thus to economy.First, an economy more open to FDI is stronger …