Is That Fiscal Convergence Provides Business Cycles Synchronization
- Publisher: Journal Of Business Management & Social Sciences Research
Journal Of Business Management & Social Sciences Research
(issn: 2319-5614, eissn: 2319-5614)
Business Management | fiscal convergence, business cycle synchronization, ODCE
Using a panel of annual data for 29 ODCE countries over the period 1996 2010, we empirically examine if fiscal convergence make business cycles more closely linked. The results suggest that a reduction in fiscal divergence tend to raise the business cycle correlation between a pair of ODCE countries.