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autarky behavior of product Brownian Motion business cycles capita GDP growth changes in relative channels of transmission column of Table consumer price index consumer with index correlated across countries correlation of annual Corruption cross-country correlation cyclical behavior demand for labour Domestic Growth domestic shocks effect is measured excluding that country factor bias factor endowments Fluctuations Foreign Direct Investment G7 Average gross output growth correlations growth with OECD implicit function theorem joint venture K-products L-industry labour supply labour-intensive products lnternational ltaly Non-Oil Shock Sample Norway OECD average growth OECD average real OECD countries OECD cycle OECD growth OECD-wide shocks parameter positive shocks abroad positively transmitted price of L-products prices of labour-intensive productivity shocks raise wages real per capita relative prices relative product prices reservation wage respectively shocks are positively Solow residuals stylized model transmission channels transmission of shocks transmitted across countries underlying shocks United Kingdom wages in GDP World Bank