Trade and business cycle synchronization in Eurozone: a refresh wavelet approach

The paper investigates the interaction between the trade and business cycle synchronization, using an extended wavelet approach. The analysis is conducted in several Eurozone countries, for the period 1960Q1-2016Q2. We show that the trade promotes economic synchronization in the considered Eurozone countries, on medium and long terms. The key ingredients are economic integration and monetary union. A reversed connection is also distinguished. On medium and long terms, a low degree of synchronization accelerates trade only if the given country has an ascending growth trend. Several different scenarios are found on short term, for particular economic contexts.