Common trends and common cycles in Belgian sectoral GDP

The aim of this paper is to examine common trends and common cycles in Belgian Sectoral output series. A multivariate technique proposed by Engle and Issler [1995] allows to deal with series which simultaneously contain common trends and common cycles. An application of their methodology for eight sectors of the Belgian per Capita real GDP is presented in this article: it has been found that four independent common trends and four independent common cycles characterize the variables.