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Understanding and conceptualizing the complexities of the contemporary global economy is a challenging but vitally important task. In this article, we critically evaluate the potential of one interpretive framework the global production networks (GPN) perspective for analysing the global economy...
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comovement. We first derive an additive decomposition of bilateral GDP comovement into components capturing shock transmission … and shock correlation. We quantify this decomposition in a parsimonious multi-country, sector and factor network … propagation model featuring a single composite supply shock, with data for 29 countries and up to 30 years. We find that the …
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