Growth Cycle Synchronization of the Visegrad Four and the European Union

Hanus, L. & Vácha, L. Empir Econ (2018). DOI: 10.1007/s00181-018-1601-x

19 Pages Posted: 10 Jun 2015 Last revised: 1 Dec 2018

See all articles by Lubos Hanus

Lubos Hanus

Institute of Economic Studies, Charles University in Prague

Lukas Vacha

Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic; Charles University in Prague - Department of Economics

Date Written: February 3, 2016

Abstract

In this paper, we map the process of business 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.

Keywords: business cycle synchronization, time-frequency, wavelets, co-movement, Visegrad Four, European Union

JEL Classification: E32, C40, F15

Suggested Citation

Hanus, Luboš and Vacha, Lukas, Growth Cycle Synchronization of the Visegrad Four and the European Union (February 3, 2016). Hanus, L. & Vácha, L. Empir Econ (2018). DOI: 10.1007/s00181-018-1601-x. Available at SSRN: https://ssrn.com/abstract=2616055 or http://dx.doi.org/10.2139/ssrn.2616055

Luboš Hanus (Contact Author)

Institute of Economic Studies, Charles University in Prague ( email )

Opletalova 26
Praha 1, 11000
Czech Republic

HOME PAGE: http://ies.fsv.cuni.cz/en/staff/hanusl

Lukas Vacha

Institute of Information Theory and Automation, Academy of Sciences of the Czech Republic ( email )

Pod vodarenskou vezi 4
Praha, CZ-18208
Czech Republic

Charles University in Prague - Department of Economics ( email )

Opletalova 26
Prague, 11000
Czech Republic

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