Burstein, Ariel
[Verfasser:in]
;
Kurz, Christopher
[Sonstige Person, Familie und Körperschaft];
Tesar, Linda
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
Trade, Production Sharing, and the International Transmission of Business Cycles
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, January 2008
Erschienen in:NBER working paper series ; no. w13731
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w13731
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Beschreibung:
Countries that are more engaged in production sharing exhibit higher bilateral manufacturing output correlations. We use data on trade flows between US multinationals and their affiliates as well as trade between the United States and Mexican maquiladoras to measure production-sharing trade and its link with the business cycle. We then develop a quantitative model of international business cycles that generates a positive link between the extent of vertically integrated production-sharing trade and internationally synchronized business cycles. A key assumption in the model is a relatively low elasticity of substitution between home and foreign inputs in the production of the vertically integrated good