Yes. A country’s suitability for EMU entry depends on the intensity of trade with EMU members, and the extent to which its business cycles are correlated with those of other members. But both international trade patterns and international business cycle correlations are endogenous. Theoretically, economic integration has an ambiguous effect on the degree to which business cycles are correlated ...

A country’s suitability for entry into a currency union depends on a number of economic conditions. These include, inter alia, the intensity of trade with other potential members of the currency union, and the extent to which domestic business cycles are correlated with those of the other countries. But international trade patterns and international business cycle correlations are endogenous. T...

in the era of globalization, particularly, since early 1990s, economies around the world have been affected considerably by co-movements in one or more countries. in the literature this phenomenon is recognized as synchronization in business cycles, while joint policies being conducted by trading partners can modify such effects properly. the objective of this paper has been to evaluate a possi...

This paper studies the business cycle in Germany using the HP-filter (Hodrick/Prescott (1997)) to isolate the cyclical component. A two-country International Business Cycle model in line with Baxter/Crucini (1995) is built to explain these facts. The combination of GHH-preferences with taste shocks resulting from government consumption is shown to be an important feature of the German business ...

This paper studies the role of business and social networks in international investment by examining the effects of ethnic Chinese networks on foreign direct investment (FDI) in China. After controlling for a variety of economic determinants of FDI, this study finds a significant positive role in inward FDI of ethnic Chinese networks proxied by the population share of ethnic Chinese in the inve...

We document that at business cycle frequency, nominal variables, such as aggregate price levels and nominal interest rates, are more correlated across countries than real output. Since national central banks control the domestic money supply and their objective has been to keep the nominal environment stable this might seem puzzling. We ask whether a simple, transparent standard international b...

Despite success along some dimensions, international business cycle models have difficulty replicating several salient features of international capital flows among developed countries. In particular, net exports and current account balances are much more persistent in the data than in standard models. We account for this feature of the data with a simple onegood two-country model in which tech...

abstract production is a process by which a productive activity will require some conditions (before and after the start of the production). one of the most important pre-required factors for start up a production unit is suitable business environment. one of the most important factors that must be provided after the start of production -during the production process and the time to market and ...

We explore the relation between international financial integration and the level of entrepreneurial activity in a country. Using a unique firm level data set of approximately 24 million firms in nearly 100 countries in 2004 and 1999, we find suggestive evidence that international financial integration has been associated with higher levels of entrepreneurial activity. Our results are robust to...

This paper characterizes the integration patterns of international currency unions (such as the CFA Franc zone). We empirically explore different features of currency unions, and compare them to countries with sovereign monies by examining the criteria for Mundell’s concept of an optimum currency area. We find that members of currency unions are more integrated than countries with their own cur...