International Advances in Economic Research

, Volume 11, Issue 2, pp 135–147

Modeling Cyclical Asymmetries in European Imports

  • José Ramón Cancelo
  • Estefanía Mourelle
Research Article

DOI: 10.1007/s11294-005-3011-z

Cite this article as:
Cancelo, J.R. & Mourelle, E. Int Adv Econ Res (2005) 11: 135. doi:10.1007/s11294-005-3011-z


This paper applies smooth transition models to capture the nonlinear behavior in the imports data of six major European economies and to assess whether such nonlinearities are related to business cycle asymmetries. Two classes of switch between regimes are considered: endogenously determined transition that assumes nonlinearities are generated by idiosyncratic components specific to foreign trade, and exogenous transition based on GDP growth as a more direct indicator of the cyclical state of the economy. The results support the proposition that the dynamics of imports are nonlinear. In Belgium, France, Spain, and the United Kingdom, regimes change over the business cycle, while in Germany and Italy the switch between regimes is endogenous. National characteristics play a role in defining the position of extreme regimes, the smoothness of the transition, and local dynamics within each state.



Copyright information

© International Atlantic Economic Society 2005

Authors and Affiliations

  • José Ramón Cancelo
    • 1
  • Estefanía Mourelle
    • 1
  1. 1.Universidade da CoruñaSpain