Theoretical and Applied Economics
No. 10 / 2006 (505)
Determinants of Business Cycle Convergence in Euro Area. The Romanian Case
Academia de Studii Economice Bucuresti
Abstract. In the OCA theory, the higher economic openness and closer economic cooperation automatically lead to the convergence of business cycles. Krugman (1993) presented and alternative view on this issue. In his opinion, closer trade ties result in better allocation of resources and higher output specialization of individual countries. As the industrial production in individual countries is becoming narrowly specialized, economies of such countries become more vulnerable and more predisposed to respond to shocks asymmetrically. The probability that shocks will be asymmetric or have asymmetric impact depends on the structure of the economy. If the structure of the economy is significantly different from the euro area, even the same shocks may have a different impact on a country and lead to asynchronous business cycle.
Keywords: OCA theory; convergence of business cycles; euro area; intra-industry trade; economic integration.
Contents
- Empirical Approaches of the Public-Private Partnership in the Services of Public Utility
Lucica Matei
- Informational Asymmetry, Sustainable Growth, Exploitation and Obligation Risks
Dumitra Stancu
Ion Stancu
- Regulation Strategy in Natural Gas Sector. The Romanian Case
Coralia Angelescu
Aura-Gabriela Socol
- Indirect Instruments of Prudential Supervision
Nicolae Dardac
Bogdan Moinescu
- Aspects about Statistical Inference
Constantin Anghelache
Georgeta Vintila
Madalina Dumbrava
- Determinants of Business Cycle Convergence in Euro Area. The Romanian Case
Marius-Corneliu Marinas
- The Institutional Investors and Corporate Governance
Niculae Feleaga
- Proposal of Controlling Implementation in a Romanian Company
Valentina Oarga
- Endogenous Growth Paradigm. Implications for Economic Policy and Theory
Gabriel Staicu
Liviu-Catalin Moraru
- Environmental Management Accounting (EMA): Reflection of Environmental Factors in the Accounting Processes through the Identification of the Environmental Costs Attached to Products, Processes and Services
Cleopatra Sendroiu
Aureliana Geta Roman
Costantin Roman
Alexandru Manole
- Using the Agent-Based Modeling in Economic Field
Nora Mihail
- Escape from the Alternative
Marin Dinu