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The Micro Origins of International Business-Cycle Comovement

IDEAS Working Paper Series from RePEc, 2018-01, Vol.108 (1), p.82-108 [Peer Reviewed Journal]

Copyright© 2018 by the American Economic Association ;Copyright American Economic Association Jan 2018 ;(c) 2018. Notwithstanding the ProQuest Terms and conditions, you may use this content in accordance with the associated terms available at https://research.stlouisfed.org/research_terms.html . ;info:eu-repo/semantics/openAccess © American Economic Association. Can be found at http://dx.doi.org/10.1257/aer.20160091 ;Copyright ;ISSN: 0002-8282 ;EISSN: 1944-7981 ;DOI: 10.1257/aer.20160091

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  • Title:
    The Micro Origins of International Business-Cycle Comovement
  • Author: di Giovanni, Julian ; Levchenko, Andrei A. ; Mejean, Isabelle
  • Subjects: Business cycles ; Economic models ; Economic theory ; International trade ; Quantitative Finance ; Universe
  • Is Part Of: IDEAS Working Paper Series from RePEc, 2018-01, Vol.108 (1), p.82-108
  • Description: This paper investigates the role of individual firms in international business-cycle comovement using data covering the universe of French firm-level value added and international linkages over the period 1993–2007. At the micro level, trade and multinational linkages with a particular foreign country are associated with a significantly higher correlation between a firm and that foreign country. The impact of direct linkages on comovement at the micro level has significant macro implications. Without those linkages the correlation between France and foreign countries would fall by about 0.098, or one-third of the observed average correlation of 0.291 in our sample of partner countries.
  • Publisher: Nashville: American Economic Association
  • Language: English
  • Identifier: ISSN: 0002-8282
    EISSN: 1944-7981
    DOI: 10.1257/aer.20160091
  • Source: Recercat
    Hyper Article en Ligne (HAL) (Open Access)
    ProQuest Central

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