published in: American Economic Review, 2003, 93 (2), 57-62
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 synchronization of business cycles. The evidence that trade and
financial integration enhance global spillovers of macroeconomic fluctuations is mostly limited
to industrial countries. One striking result is that, on average, cross-country consumption
correlations have not increased in the 1990s, precisely when financial integration would have
been expected to result in better risk-sharing opportunities, especially for developing
countries.
We use cookies to provide you with an optimal website experience. This includes cookies that are necessary for the operation of the site as well as cookies that are only used for anonymous statistical purposes, for comfort settings or to display personalized content. You can decide for yourself which categories you want to allow. Please note that based on your settings, you may not be able to use all of the site's functions.
Cookie settings
These necessary cookies are required to activate the core functionality of the website. An opt-out from these technologies is not available.
In order to further improve our offer and our website, we collect anonymous data for statistics and analyses. With the help of these cookies we can, for example, determine the number of visitors and the effect of certain pages on our website and optimize our content.