Economic convergence in a globalized world: The role of business cycle synchronization.

Increasing economic integration and global synchronization can be key for countries aiming to catch up in GDP per capita terms. Little attention has hitherto been placed in synchronization as determinant of convergence. In this paper we estimate the effect of economic globalization and synchronizati...

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Autores principales:	Andres Lopez, Sonia De Lucas, Maria Jesus Delgado
Formato:	article
Lenguaje:	EN
Publicado:	Public Library of Science (PLoS) 2021
Materias:	Medicine R Science Q
Acceso en línea:	https://doaj.org/article/6d8fac4db37c4dd59e0e13cb2c8e0476
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spelling	oai:doaj.org-article:6d8fac4db37c4dd59e0e13cb2c8e04762021-12-02T20:13:36ZEconomic convergence in a globalized world: The role of business cycle synchronization.1932-620310.1371/journal.pone.0256182https://doaj.org/article/6d8fac4db37c4dd59e0e13cb2c8e04762021-01-01T00:00:00Zhttps://doi.org/10.1371/journal.pone.0256182https://doaj.org/toc/1932-6203Increasing economic integration and global synchronization can be key for countries aiming to catch up in GDP per capita terms. Little attention has hitherto been placed in synchronization as determinant of convergence. In this paper we estimate the effect of economic globalization and synchronization on income convergence for a sample of 89 developed and developing countries in the period 1970-2015. We use a dynamic factor model and panel data techniques to undertake the objectives of the paper. We show that synchronized countries (those correlated with the factor) exhibit a higher response on GDP per capita growth with variations on the global business cycle. This implies that synchronization improves growth for that group in global expansionary phases, but also implies risks during global recessions. On the contrary, the effect on growth of an economic globalization index is less relevant for synchronized countries than for asynchronized countries. The latter result implies that asynchronized countries can benefit more increasing their levels of economic globalization.Andres LopezSonia De LucasMaria Jesus DelgadoPublic Library of Science (PLoS)articleMedicineRScienceQENPLoS ONE, Vol 16, Iss 10, p e0256182 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	Medicine R Science Q
spellingShingle	Medicine R Science Q Andres Lopez Sonia De Lucas Maria Jesus Delgado Economic convergence in a globalized world: The role of business cycle synchronization.
description	Increasing economic integration and global synchronization can be key for countries aiming to catch up in GDP per capita terms. Little attention has hitherto been placed in synchronization as determinant of convergence. In this paper we estimate the effect of economic globalization and synchronization on income convergence for a sample of 89 developed and developing countries in the period 1970-2015. We use a dynamic factor model and panel data techniques to undertake the objectives of the paper. We show that synchronized countries (those correlated with the factor) exhibit a higher response on GDP per capita growth with variations on the global business cycle. This implies that synchronization improves growth for that group in global expansionary phases, but also implies risks during global recessions. On the contrary, the effect on growth of an economic globalization index is less relevant for synchronized countries than for asynchronized countries. The latter result implies that asynchronized countries can benefit more increasing their levels of economic globalization.
format	article
author	Andres Lopez Sonia De Lucas Maria Jesus Delgado
author_facet	Andres Lopez Sonia De Lucas Maria Jesus Delgado
author_sort	Andres Lopez
title	Economic convergence in a globalized world: The role of business cycle synchronization.
title_short	Economic convergence in a globalized world: The role of business cycle synchronization.
title_full	Economic convergence in a globalized world: The role of business cycle synchronization.
title_fullStr	Economic convergence in a globalized world: The role of business cycle synchronization.
title_full_unstemmed	Economic convergence in a globalized world: The role of business cycle synchronization.
title_sort	economic convergence in a globalized world: the role of business cycle synchronization.
publisher	Public Library of Science (PLoS)
publishDate	2021
url	https://doaj.org/article/6d8fac4db37c4dd59e0e13cb2c8e0476
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Economic convergence in a globalized world: The role of business cycle synchronization.

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