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Effects of Trade and Financial Links on the Transmission of GDP Growth

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  • Paul Armstrong-Taylor

    (Hopkins-Nanjing Center, Nanjing University, Nanjing 210093, China)

Abstract

Using panel analysis of quarterly data from 14 developed countries between 1980 and 2012, I examine the channels by which GDP growth transmission has taken place, and how the transmission of growth has varied with time and global growth. I find that countries with large, open banking sectors and trade deficits tend to transmit growth more strongly than other countries. Transmission effects seem to have become stronger over time and are stronger in periods of slow economic growth.

Suggested Citation

  • Paul Armstrong-Taylor, 2014. "Effects of Trade and Financial Links on the Transmission of GDP Growth," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 9(4), pages 556-572, December.
    • Handle: RePEc:fec:journl:v:9:y:2014:i:4:p:556-572
    as

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    File URL: http://journal.hep.com.cn/fec/EN/10.3868/s060-003-014-0026-6
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    trade links; financial links; contagion; financial crises; global recessions;
    All these keywords.

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • F65 - International Economics - - Economic Impacts of Globalization - - - Finance
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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