Jarko Fidrmuc, Iika Korhonen and Ivana Ba´torova´ examine another
measure of economic integration, the correlation (or synchronization) of
national business cycles. They focus particularly on an issue of current
interest, the integration of China in the world economy. In their analysis
of dynamic correlations of business cycles at different frequencies,
Fidrmuc, Korhonen and Ba´torova´ find that the business cycle in China
is substantially different from many OECD countries. More notably, their
results indicate that countries actively engaged in trade with China tend to
display a lower degree of business-cycle synchronization with other OECD
countries