JOINT VIENNA MACROECONOMICS SEMINAR	INVITATION
R E M I N D E R The Joint Vienna Institute and the Department of Economics and Finance at the Institute for Advanced Studies cordially invite you to the following Joint Vienna Macroeconomics Seminar Tuesday, May 19, 2015 IHS, Stumpergasse 56, 1060 Vienna, HS II 5:00 pm Julian di Giovanni UPF, Barcelona Micro Origins of International Business Cycle Comovement This paper investigates the role of individual firms in international business cycle comovement using data covering the universe of French firm-level value added, bilateral imports and exports, and cross-border ownership over the period 1991-2007. Because internationally connected firms are systematically larger than non-internationally connected firms, the firms directly linked to foreign countries represent less than 10% of all firms, but 58% of all value added. Controlling for firm and country effects, trade in goods with a particular foreign country is associated with a significantly higher correlation between a firm and that foreign country. In addition, foreign multinational affiliates operating in France are significantly more correlated with the source economy. The firm-level impact of direct trade and multinational linkages has significant aggregate implications. Directly connected firms account for three-quarters of the observed aggregate comovement. Without those linkages the correlation between France and foreign countries would fall by about 0.026, or nearly 10% of the observed average business cycle correlation of 0.29 in this sample of countries. These results are evidence of transmission of business cycle shocks through direct trade and multinational ownership linkages at the firm level, and of the important role of granularity in international business cycle comovement. paper jointly with Andrei A. Levchenko and Isabelle Méjean We are looking forward to seeing you! Institute for Advanced Studies Department of Economics and Finance Stumpergasse 56, 1060 Vienna, Austria Tel.: +43 1 599 91 145 e-Mail: economics@ihs.ac.at http://economics.ihs.ac.at		LINKS DIRECTIONS TO IHS on Google maps JOINT VIENNA MACRO SEMINAR on Google calendar ECONOMICS SEMINARS IN VIENNA on Google calendar
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