Citation

Discussion Paper Details

Please find the details for DP13662 in an easy to copy and paste format below:

Full Details

Title: Fundamental Moments

Author(s): Jean Imbs and Laurent Pauwels

Publication Date: April 2019

Keyword(s): aggregate volatility, GDP synchronization, global hubs, granularity, input-output linkages and World Input-Output Tables

Programme Area(s): International Macroeconomics and Finance and Macroeconomics and Growth

Abstract: Global trade can give rise to global hubs, centers of activity whose influence on the global economy is large enough that local disturbances have consequences in the aggregate. This paper investigates the nature, existence, and rise of such hubs using the World Input-Output Tables (WIOT) to evaluate the importance of vertical trade in creating global hubs that significantly affect countries volatility and their co-movement. Our results suggest that the world has become more granular since 1995, with significant consequences on GDP volatility and co-movements especially in developed countries. These consequences are well explained by international trade.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13662

Bibliographic Reference

Imbs, J and Pauwels, L. 2019. 'Fundamental Moments'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=13662