Meta-analysis of the business cycle correlation between the euro area and the CEECs

We review the literature on business cycle correlation between the euro area and the Central and Eastern European countries (CEECs), a topic that has gained attention as the newest EU members approach monetary union. Our meta-analysis of 35 identified publications suggests that some CEECs already have comparably high correlation with the euro area business cycle. We find that estimation methodologies can have a significant effect on correlation coefficients. While CEEC central bankers tend to be more conservative in their estimates than academics or eurosystem researchers, we find no evidence of a geographical bias in the studies. Journal of Comparative Economics 34 (3) (2006) 518-537. University of Munich, Faculty of Economics, CESifo, Germany; Comenius University Bratislava, Department of Applied Mathematics and Statistics, Slovakia; Institute for Economies in Transition, Bank of Finland, Finland. (c) 2006 Association for Comparative Economic Studies. Published by Elsevier Inc. All rights reserved.