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- Source: Baier and Bergstrand (2007), Database on Economic Integration Agreements. Differences in economic development: Absolute differences in GDP per capita (in PPP). Source: World Bank, International Comparison Program database. Distance between the main economic centers: mean of (by population) weighted distances between biggest cities/areas. Source: CEPII, Gravity dataset, http://www.cepii.fr/CEPII/en/bdd modele/presentation.asp?id=8. Common border: Dummy variables with value 1 if countries have a common border and 0 otherwise. Source: CEPII, Gravity dataset, http://www.cepii.fr/CEPII/en/bdd modele/presentation.asp?id=8.
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Yetman, J. (2011): “Exporting recessions: international links and the business cycle,†Economics Letters, 110(1), 12–14. A Measures and Data Sources Synchronization: Negative absolute difference of real GDP growth, see equation 6. Source: OECD Economic Outlook. FDI integration: Sum of bilateral FDI inward and outward positions divided by the sum of nominal GDP, see equation 7. Source: OECD International Direct Investment Statistics; World Bank, World Development Indicators. Trade integration: Bilateral import and export divided by the sum of nominal GDP, see equation 8. Source: IMF, Direction of Trade Statistics; World Bank, World Development Indicators. Differences in the sector structure: Sum over negative absolute differences between value added shares for 41 sectors, see equation 9. Source: OECD STAN database. Monetary policy: Absolute difference in short term interest rates (three month nominal interest rate, mainly interbank rates). Source: OECD Economic Outlook.