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Working Papers N° 60: Comovement and Macroeconomic Interdependence: Evidence for Latin America, East Asia, and Europe

Autor: Norman Loayza , Humberto Lopez , Angel Ubide


Description

This paper analyzes common economic patterns across countries and economic sectors in Latin America, East Asia and Europe for the period 1970-94. This is done by means of an errorcomponents model that decomposes real value-added growth in each country into common international effects, sector-specific effects and country-specific effects. We find significant comovement in the European and East Asian samples. In the Latin American sample, however, we find country-specific components to be considerably more important than common patterns. These results are robust to different sub-sample time spans and different sub-sample country groups.

 
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