The World Is Not Enough! Small Open Economies and Regional Dependence
在动态因子模型中引入区域因素，分析四个小型开放经济体的数据，发现全球和区域冲击分别解释约30%和20%的商业周期波动，其中全球冲击主要影响贸易变量，区域冲击则更多解释成本变量变化。
Abstract In this paper, we explicitly introduce regional factors into a global dynamic factor model. We combine new open economy factor models (emphasizing global shocks) with the recent findings of regional importance in the business cycle synchronization literature. The analysis is applied to a large panel of domestic data for four small open economies. We find that global and regional shocks explain roughly 30 and 20 percent, respectively, of the business cycle variation in all countries. While global shocks have most impact on trade variables, regional shocks explain a relatively large share of the variation in cost variables.