TY  - RPRT
        AU  - Kose, M. Ayhan
AU  - Prasad, Eswar
AU  - Terrones, Marco E.
        TI  - How Does Globalization Affect the Synchronization of Business Cycles?
        PY  - 2003/Jan/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 702
        UR  - https://www.iza.org/publications/dp702
        AB  - 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.
        KW  - international transmission of shocks
KW  - trade and financial integration
KW  - macroeconomic fluctuations
KW  - cross-country comovement of output and consumption
        ER  -