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effects do. The authors apply instrumental variables to confirm a causal relationship. In this paper, we refine the estimation … coefficients. We develop and apply an alternative OLS-based estimation procedure. Second, we add structure-of-trade variables to … consistent with theirs. With our own model estimation, we find that specialization generally does not significantly asynchronize …
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What are the effects of financial integration on global comovement? Using a standard two-country DSGE model, I show that in response to country-specific supply shocks higher exposure to foreign assets leads to lower cross-country output correlations, while the opposite is true for...
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Countries that trade more with each other exhibit higher business cycle correlation. This paper examines the mechanisms underlying this relationship using a large cross-country industry-level panel dataset of manufacturing production and trade. We show that sector pairs that experience more...
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This paper examines the impact of rising trade and financial integration on international business cycle comovement among a large group of industrial and developing countries. The results provide at best limited support for the conventional wisdom that globalization has increased the degree of...
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