The paper sheds light on trade integration, financial and sector specialization in Peru, and its impact on GDP cycles. This being said, the author argues that there is a multidirectional relationship between financial and trade integration and the levels of sector specialization across Peru, thereby affecting the country’s GDP. Consequently, these arguments suggest that greater trade integration may have exacerbated the effects of GDP cycles in Peru in the context of the 2008 crisis.
The paper is organized into five sections. After a brief introduction, the second section presents some theoretical aspects behind the relationship between the GDP cycles and trade and financial integration. Meanwhile the third section presents the methodology and data sources used. Section four summarizes the results obtained, whereas chapter five offers some concluding arguments.
In conclusion, the author argues that the results portray the existence of a statistical relationship between the degree of synchronization of GDP cycles, trade and financial integration, and the country’s sector specialization.