| Sumario: | A study was conducted to investigate the patterns and determinants of business cycle correlations among 11 British regions and six euro-zone nations over the 1966–97 period, employing the generalized method of moments to allow for sampling error in comparing estimated correlations. Findings revealed that the British business cycle was persistently out of phase with that of the chief euro-zone economies, with the trend being toward lower correlations; only minor cyclical heterogeneity was detected among U.K. regions, meanwhile, and differences in sectoral specialization fueled some of the asymmetry in GDP fluctuations but did not seem significant in accounting for the reduction in U.K.-European Union business cycle correlations over time.
|
|---|