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Economic integration and industrial sector fluctuations: evidence from Italy

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  • Tatiana Cesaroni

    (Italian Ministry of Economy and Finance)

Abstract

This paper investigates the underlying sources of the Italian industrial sector fluctuations. It concentrates in particular on the role of different shocks on the manufacturing business cycle. To this end, it considers both domestic shocks (to hours worked and to technology) and external shocks (i.e. real exchange rate and world trade shocks). The former concern internal conditions such as labour market and productivity dynamics; the latter relate to the effects of economic integration, globalization and the world economy scenario on the manufacturing sector performance. The findings show evidence that the cyclical fluctuations are mainly determined by technology shocks,however,the hours worked and world trade shocks also contribute significantly to explaining the manufacturing business cycle.

Suggested Citation

  • Tatiana Cesaroni, 2013. "Economic integration and industrial sector fluctuations: evidence from Italy," Economics Bulletin, AccessEcon, vol. 33(2), pages 944-958.
    • Handle: RePEc:ebl:ecbull:eb-12-00612
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    Cited by:

    1. Roberta De Santis & Tatiana Cesaroni, 2016. "Current Account ‘Core–Periphery Dualism’ in the EMU," The World Economy, Wiley Blackwell, vol. 39(10), pages 1514-1538, October.
    2. Cesaroni, Tatiana & De Santis, Roberta, 2015. "Current Account �Core-Periphery Dualism� in the EMU," CEPS Papers 10317, Centre for European Policy Studies.

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    More about this item

    Keywords

    Business cycle; Italian Industry performance; SVAR model; Economic integration; World trade;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles

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