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This paper studies the co-movement of intra-Asian business cycles. Based on the regional bilateral trade statistics and using three de-trending techniques to examine several macroeconomic fundamentals, the negative trade effects prevailing in the cases of economic activity such as real GDP and industrial production indicate that tighter intraAsian trade may most likely lead to more idiosyncrati...

This paper addresses the international comovement puzzle. International real business cycle models tend to predict negative cross-country correlations of investment and employment. In the data these correlations are positive. To reconcile the theory with the data the literature has resorted to financial frictions and new sources of disturbances. We show that a model driven by productivity shock...

Comovement is more than correlation. This paper estimates the contributions of intermediate production linkages, trade patterns, and financial holdings on the directed graph of linkages that describe the international propagation of macroeconomic shocks at the business cycle frequency. The empirical methodology is a novel generalization of the panel vector autoregression (VAR) which nests both ...

This paper introduces a new empirical strategy for the characterization of business cycles. It combines non-parametric decoding methods that classify a series into expansions and recessions but does not require specification of the underlying stochastic process generating the data. It then uses network analysis to combine the signals obtained from different economic indicators to generate a uni...

BACKGROUND There is a rapidly expanding literature on the application of complex networks in economics that focused mostly on stock markets. In this paper, we discuss an application of complex networks to study international business cycles. METHODOLOGY/PRINCIPAL FINDINGS We construct complex networks based on GDP data from two data sets on G7 and OECD economies. Besides the well-known correl...

This paper is motivated by three observations about the link between international trade and international business cycle synchronization: (1) a large increase in trade in manufactures over the last 30 years, (2) a larger fraction of trade between core and periphery regions relative to core regions is in the form of production sharing, (3) crosscountry output correlations have increased between...

This paper introduces a new empirical strategy for the characterization of business cycles. It combines non-parametric decoding methods that classify a series into expansions and recessions but does not require specication of the underlying stochastic process generating the data. It then uses network analysis to combine the signals obtained from di erent economic indicators to generate a uniqu...