The effects of direct and indirect trade linkages on GDP comovement during crisis times
Abstract
Using panel data for Korea and its trade partners from1992 to 2022, this study shows that the effects of trade linkages on cross-country GDP comovement differ between crisis and tranquil times. The effects of bilateral trade and common trade exposure to third countries on GDP comovement are greater during crisis times than tranquil times. The strength of common trade exposure as a transmission channel of global shocks increases significantly during crisis times.
Fields of Study & Subjects
Global Financial Crisis and Policies
Global trade and economics
Monetary Policy and Economic Impact
Publication details
- Journal / source
- Applied Economics Letters
- Publisher
- Informa UK Limited
- Pages
- 1–6
- Publication date
- 9 June 2026
- Language
- EN