Regionalization vs. Globalization

Arbeitspapier

Both global and regional economic linkages have strengthened substantially over the past quarter century. We employ a dynamic factor model to analyze the implications of these linkages for the evolution of global and regional business cycles. Our model allows us to assess the roles played by the global, regional, and country-specific factors in explaining business cycles in a large sample of countries and regions over the period 1960-2010. We find that, since the mid-1980s, the importance of regional factors has increased markedly in explaining business cycles especially in regions that experienced a sharp growth in intra-regional trade and financial flows. By contrast, the relative importance of the global factor has declined over the same period. In short, the recent era of globalization has witnessed the emergence of regional business cycles.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 1302

Classification and Topics

• Classification: Wirtschaft ; Bayesian Analysis: General ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Business Fluctuations; Cycles ; Open Economy Macroeconomics ; International Policy Coordination and Transmission
• Subject: business cycles ; comovement ; synchronization ; trade linkages ; financial linkages ; Konjunktur ; Regionale Konjunktur ; Internationale Wirtschaftsbeziehungen ; Konjunkturzusammenhang ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hirata, Hideaki ; Kose, M. Ayhan ; Otrok, Christopher
• Event: Veröffentlichung
• (who): Koç University-TÜSİAD Economic Research Forum (ERF)
• (where): Istanbul
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/108617
• Last update: 10.03.2025, 11:45 AM CET