02055cas a2200277 a 4500 AALejournalIMF014321 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475522464 1018-5941 BD-DhAAL BD-DhAAL Duval, Romain. Trade Integration and Business Cycle Synchronization : A Reappraisal with Focus on Asia / Romain Duval, Kevin Cheng, Kum Hwa Oh, Richa Saraf. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (46 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper reexamines the relationship between trade integration and business cycle synchronization (BCS) using new value-added trade data for 63 advanced and emerging economies during 1995-2012. In a panel framework, we identify a strong positive impact of trade intensity on BCS-conditional on various controls, global common shocks and country-pair heterogeneity-that is absent when gross trade data are used. That effect is bigger in crisis times, pointing to trade as an important crisis propagation mechanism. Bilateral intra-industry trade and trade specialization correlation also appear to increase co-movement, indicating that not only the intensity but also the type of trade matters. Finally, we show that dependence on Chinese final demand in value-added terms amplifies the international spillovers and synchronizing impact of growth shocks in China. Mode of access: Internet Cheng, Kevin. Hwa Oh, Kum. Saraf, Richa. IMF Working Papers; Working Paper ; No. 2014/052 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/052/001.2014.issue-052-en.xml IMF e-Library