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 …

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 …

) showed empirically that increased trade would have a positive impact on business cycle correlation while acknowledging the … cycles since the adoption of the euro. Then, we attempt to link the business cycle synchronization with trade integration …. Our new contribution is that we examine the role intra-industry trade (IIT), and vertical IIT (V-IIT), in business cycle …

production structures, TFP shocks, similarity in exchange rate policy, intra-industry trade, risk sharing, and capital mobility … are robust determinants of BCS. Some well-established determinants such as bilateral trade, monetary policy similarity …, gravity variables, and participation in a monetary union and free trade area have turned out to be fragile. The structure of …

this reactivity is not conditioned by trade and investment agreements, it must be qualified with respect to the type of FDI … FDI between two countries increases with source GDP instability and with host GDP stability. We also find that although … differential, the incidence of vertical FDI thus tends to be higher when uncertainty is high than when uncertainty is low …

, testing for the importance of pairwise country links as well as characteristics of the receiving country (trade and financial … open- ness, exchange rate regime, fiscal variables). We find that trade integration fosters the spill-over of business … cycles, both bilaterally and as a country characteristic (trade openness). Results for financial integration are mixed …