ABSTRACT
This chapter aims to apply the alternative identification methodology developed in the preceding chapter to identify business cycles, namely global cycles and cycles pertaining to sub-global groupings of countries. Global cycles are identified using non-smoothed composites of both non-weighted and weighted global real Gross Domestic Product (GDP) growth rates. The trend movements of the two global real GDP composites diverge from the beginning of the 1990s, providing two contrasting views of movements in the global economy. The chapter attempts to identify the characteristics of cycles pertaining to sub-global clusters of developing countries, grouped according to their levels of development and economic structures. The classification of countries according to their level of development follows the widely used Gross National Income per capita classification made by the World Bank. The chapter seeks to identify cycles for groupings of developing countries based on perceived differing structures of the economies.
