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The World Bank Economic Review Advance Access originally published online on January 24, 2007
The World Bank Economic Review 2007 21(1):49-72; doi:10.1093/wber/lhl014
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Right arrow E32 - Business Fluctuations; Cycles
Right arrow F15 - Economic Integration
Right arrow F42 - International Policy Coordination and Transmission
Right arrow O11 - Macroeconomic Analyses of Economic Development
Right arrow O19 - International Linkages to Development; Role of International Organizations
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© The Author 2007. Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. All rights reserved. For permissions, please e-mail: journals.permissions@oxfordjournals.org

Business Cycle Synchronization and Regional Integration: A Case Study for Central America

Norbert Fiess

Correspondence: n.fiess{at}socsci.gla.ac.uk

JEL codes: F15, F42

Deeper trade integration between Central America and the United States, as envisaged under the Central American Free Trade Agreement, is likely to lead to closer links between Central American and U.S. business cycles. This article assesses the degree of business cycle synchronization between Central America and the United States—relevant not only for a better understanding of the influence of important trading partners on the business cycle fluctuations in the domestic economy but for evaluating the costs and benefits of macroeconomic coordination.

Norbert Fiess is the deputy director of the Centre for Development Studies in the Department of Economics at the University of Glasgow; his email address is n.fiess{at}socsci.gla.ac.uk. A supplemental appendix to this article is available at http://wber.oxfordjournals.org.


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