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Economic Integration and Regional Business Cycles: Evidence from the Iberian Regions *
Author(s) -
Barrios Salvador,
Lucio Juan José
Publication year - 2003
Publication title -
oxford bulletin of economics and statistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.131
H-Index - 73
eISSN - 1468-0084
pISSN - 0305-9049
DOI - 10.1111/1468-0084.t01-2-00059
Subject(s) - business cycle , convergence (economics) , economics , economic integration , economic geography , positive correlation , econometric model , international economics , economy , macroeconomics , econometrics , medicine
This paper provides evidence of the positive impact of economic integration on EU regions’ business cycles convergence by focusing on two neighbouring countries: Spain and Portugal. We show that while a rise in cross‐country business cycle correlation has also been experienced by other European countries, it has been relatively more pronounced for Iberian regions. Econometric evidence suggests that the existence of an administrative border, the economic size of regions and their industrial structures can explain a substantial proportion of regional cycles.