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Article
Trade intensity and output synchronisation: on the endogeneity properties of EMU
Journal of Financial Stability (2014)
  • Roberta De Santis
  • Guglielmo Maria Caporale
  • Alessandro Giradi
Abstract

Using annual bilateral data over the period 1988-2011 for a panel of 26 industrialised and emerging economies, we analyse in a time-varying framework the determinants of output synchronisation in EMU (European Monetary Union) distinguishing between core and peripheral member states. The results support the specialisation paradigm rather than the endogeneity hypothesis. Evidence is found in the euro period of diverging patterns between the core and the peripheral EMU countries raising questions about the financial stability of EMU.

Keywords
  • output synchronisation,
  • trade intensity,
  • endogeneity,
  • European Monetary Union (EMU)
Publication Date
2014
Citation Information
Roberta De Santis, Guglielmo Maria Caporale and Alessandro Giradi. "Trade intensity and output synchronisation: on the endogeneity properties of EMU" Journal of Financial Stability (2014)
Available at: http://works.bepress.com/roberta_de_santis/21/