Business cycles are both less volatile and more synchronized with the world cycle in rich countries than in poor ones. We develop two alternative explanations based on the idea that comparative advantage causes rich countries to specialize in industries that use new technologies operated by...

Business cycles are different in rich and poor countries-because the industries in which each group of countries specialize respond differently to domestic and foreign shocks.Business cycles are less volatile in rich countries than in poor ones. They are also more synchronized with the world...

Business cycles are both less volatile and more synchronized with the world cycle in rich countries than in poor ones. We develop two alternative explanations based on the idea that comparative advantage causes rich countries to specialize in industries that use new technologies operated by...