Publication detail

Growth cycle synchronization of the Visegrad Four and the European Union

Author(s): Mgr. Luboš Hanus ,
Mgr. Lukáš Vácha Ph.D.,
Type: Articles in journals with impact factor
Year: 2020
Number: 0
ISSN / ISBN:
Published in: Empirical Economics 58 (4), 1779-1795
Publishing place:
Keywords: Growth cycles, synchronization, integration, time-frequency, wavelets, co-movement
JEL codes:
Suggested Citation:
Abstract: In this paper, we map the growth cycle synchronization across the European Union, specifically focusing on the position of the Visegrad Four countries. We study the synchronization using frequency and time-frequency domain. To accommodate for dynamic relationships among the countries we propose a wavelet cohesion measure with time-varying weights. Analyzing quarterly data from 1995 to 2017, we show an increasing co-movement of the Visegrad Four countries with the European Union after the countries have accessed the European Union. We show that participation in a currency union increases the co-movement of the country adopting the Euro. Furthermore, we find a high degree of synchronization at business cycle frequencies of the Visegrad Four and countries of the European monetary union.

Partners

Deloitte

Sponsors

CRIF
McKinsey
Patria Finance