Global trade and GDP comovement

This paper revisits the relationship between trade and cross-country GDP correlation for 134 countries from 1970 to 2009. We introduce two notions of linkages: (i) direct bilateral index (ii) common exposure ”third” capturing role networks. Both are economically statistically associated with correlation, suggesting an indirect additional channel through which fluctuations propagate linkages. Moreover, high income become more synchronized when content their is tilted toward intermediate inputs while in final goods key lower countries. Finally, we present evidence increase comovement slope over last decades, may reflect density international network.