We analyze the role of fiscal policy and intra-European trade in business cycle synchronization in the EU for the … between trade integration and cyclical synchronization are subject to endogeneity problems. We instrument fiscal budget … trade integration are important determinants of cyclical synchronization. We can conclude that once a high degree of trade …

I investigate the determinants of business cycles synchronization across regions. I use both international and … synchronization in the context of a system of simultaneous equations. In all specifications, the results are as follows. (i …) Simultaneity is important, as both trade and financial openness have a direct and an indirect effect on cycles synchronization. (ii …