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Author:Cook, D.
Title:Market entry and international propagation of business cycles
Journal:Journal of International Economics
2002 : JAN, VOL. 56:1, p. 155-175
Index terms:BUSINESS CYCLES
COMPANY FORMATION
INTERNATIONAL RELATIONS
MARKET ENTRY
Language:eng
Abstract:In this paper, pro-cyclical market entry acts as an international transmission mechanism for business cycle shocks. In an imperfectly competitive dynamic equilibrium model, an expansion in one open economy leads to additional business formation in a parallel large open economy through demand spillovers.
SCIMA record nr: 228813
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