Comparative Advantage and the Cross-Section of Business Cycles 1948.
Business cycles are less volatile in rich countries than in poor ones.
They are also more synchronized with the world cycle. Kraay and Ventura develop two alternative but noncompeting explanations for those facts. Both explanations proceed from the observation that the law of comparative advantage causes rich and poor countries to specialize in the production of different commodities. Cross-country differences in business cycles then arise as a result of asymmetries among the industries in which different countries specialize. Kraay and Ventura focus on two such asymmetries.