@article{Djogbenou:274718,
      recid = {274718},
      author = {Djogbenou, Antoine A.},
      title = {Comovements in the Real Activity of Developed and Emerging  Economies: A Test of Global versus Specific International  Factors},
      address = {2018-04},
      number = {2110-2018-4528},
      series = {Working Paper No. 1392},
      pages = {37},
      year = {2018},
      abstract = {Although globalization has shaped the world economy in  recent decades, emerging economies have experienced  impressive growth compared to developed economies,  suggesting a decoupling between developed and emerging  business cycles. Using observed developed and emerging  economy activity variables, we investigate whether the  latter assertion can be supported by observed data. Based  on a two-level factor model, we assume these activity  variables can be decomposed into a global component,  emerging or developed common component and idiosyncratic  national shocks. We propose a statistical test for the null  hypothesis of a one-level specification, where it is  irrelevant to distinguish between emerging and developed  latent factors against the two-level alternative. This  paper provides a theoretical justification and simulations  that document the testing procedure. An application of the  test to a panel of developed and emerging countries leads  to strong statistical evidence of decoupling.},
      url = {http://ageconsearch.umn.edu/record/274718},
      doi = {https://doi.org/10.22004/ag.econ.274718},
}