Anna Missiaia
Visiting research fellow
The fall and rise of business cycle co-movements in Imperial Austria's regions
Author
Summary, in English
his paper investigates regional business cycle co-movements in Austria–Hungary from 1867 to 1913. Economic theory suggests that rising market integration induces sectoral specialisation, resulting in a reduction in the correlation of regional GDP cycles (Krugman effect). However, the synchronisation of business cycles is expected to increase because of the growing inter-linkages among regions led by the adoption of common currency and common economic policies (Frankel and Rose effect). We show that in the case of nineteenth-century Austria–Hungary the specialisation effect, most likely amplified by the stock market crisis of 1873, prevailed during 1867–1890, while the common currency/policy effect prevailed during 1890–1913, when the gold standard was adopted in both Austria and Hungary. However, core and peripheral regions contributed differently to the correlation of business fluctuations.
Department/s
- Department of Economic History
Publishing year
2018-01
Language
English
Pages
171-193
Publication/Series
Annals of Regional Science
Volume
60
Issue
1
Document type
Journal article
Publisher
Springer
Topic
- Economic History
Status
Published
ISBN/ISSN/Other
- ISSN: 1432-0592