Regional business cycle synchronization in Europe?

Montoya, Lourdes Acedo; Haan, de Jakob

doi:10.1007/s10368-008-0106-z

Cited by 98 publications

(72 citation statements)

References 27 publications

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“…To the best of our knowledge, existing studies dealing with regional cycle synchronization do not employ bilateral data and either simply illustrate the behaviour of cycle co-movement (Fatás 1997;Montoya and De Haan 2008) or concentrate on different aspects such as regional investments and employment and productivity dynamics (Anagnastou et al 2015;Marino 2013;Fingleton et al 2015). Our study hence represents a novelty in many respects.…”

Section: Introductionmentioning

confidence: 99%

Interregional Trade, Specialization, and the Business Cycle: Policy Implications for the EMU

2017

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In this paper we analyse the effects of trade and specialisation on regional business cycle co-movement in the Economic and Monetary Union. Using a novel and unique bilateral regional trade dataset, we find that regions with stronger trade linkages and similar economic structures have more synchronized cycles. These results suggest that policies fostering regional specialization at the European level may reduce business cycle synchronization across regions and countries. This, in turn, might generate macroeconomic tensions in the common currency area. On the other hand, market integration policies can foster regional cycle synchronization and favour the functioning of the monetary union.

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Section: Introductionmentioning

confidence: 99%

Interregional Trade, Specialization, and the Business Cycle: Policy Implications for the EMU

2017

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“…Periklis Gogas and George Kothroulas (2009) provide evidence that synchronization of cycles has weakened since adoption of the euro. On the other hand, Lourdes Montoya and Jakob de Haan (2008) conclude that, on average, synchronization has increased since the single currency was introduced.…”

Section: Introductionmentioning

confidence: 99%

Convergence between the business cycles of Central and Eastern European countries and the Euro area

Stanišić

2013

Baltic Journal of Economics

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Although entry to the Euro area (EA) is based only on fulfilment of the Maastricht criteria, implementation of optimum currency criteria and real economic convergence determines the benefits and costs of monetary integration. This paper focuses on the synchronization of business cycles among Central and Eastern European countries (CEECs) and the EA. Business cycles are extracted from GDP data series using a double Hodrick-Prescott filter method. The degree of co-movement of cycles is evaluated on the basis of various methods of rolling correlation. Results show that there is no common CEE business cycle, although a synchronization trend is evident. Similarly, there is a strong trend of convergence of CEEC national business cycles toward that of the EA.

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“…Others have focused on developing time series and statistical methods for isolating trend and cyclical components and analysing their interaction (such as Harding and Pagan, 2002;Zarnowitz and Ozyildirim, 2006). Several others have been mainly concerned with assessing changes in the synchronicity of regional business cycles over time (for example, Owyang et al, 2005;Tondl and Traistaru-Siedschlag, 2006;Montoya andDe Haan, 2008: Hayashida, andHewings, 2009;Panteladis and Tsiapa, 2011;Bierbaumer-Polly, 2012). Yet others have examined the implication of asymmetries in regional business cycles for monetary integration and common currency areas (Bayoumi and Eichengreen, 1993;Krugman, 1993;Frankel and Rose, 1998;Barrios, Brülhart, Eliot and Sensier, 2003;Barrios and Lucio, 2003;Partridge and Rickman, 2005).…”

Section: Introductionmentioning

confidence: 99%

How Regions React to Recessions: Resilience and the Role of Economic Structure

et al. 2016

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This paper examines how employment in the major UK regions has reacted to the four major recessions of the last forty years, namely 1974-67, 1979-83, 1990-93 and 2008-10. The notions of resistance and recoverability are used to examine these reactions. The analysis reveals both continuities and significant changes in the regional impact of recession from one economic cycle to the next. Further, while economic structure is found to have exerted some influence on the resistance and recoverability of certain regions, in general 'region-specific' or 'competitiveness' effects appear to have played an equally, if not more, significant role.

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Regional business cycle synchronization in Europe?

Abstract: Business cycles, Synchronization of business cycles, Regions, E32, F42,

Cited by 98 publications

References 27 publications

Interregional Trade, Specialization, and the Business Cycle: Policy Implications for the EMU

Interregional Trade, Specialization, and the Business Cycle: Policy Implications for the EMU

Convergence between the business cycles of Central and Eastern European countries and the Euro area

How Regions React to Recessions: Resilience and the Role of Economic Structure

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