Co-movements of OECD growth cycles

The study is of short-run and long-run co-movements and convergence across 21 OECD real per capita outputs on a sample period spanning 1960 to 1992 using dynamic principal components analysis and coherence analysis. We reject the hypothesis of convergence, but find evidence for long-run growth cycles closely related across countries. In particular, the G5 group exhibits the highest degree of economic integration in the long run. The group of the original members of the Community also exhibits linkages at high and medium frequencies and represents the most homogeneous area in Europe in terms of output dynamics both in the long and short run.