Researchers studied how economic fluctuations in developed countries affect developing economies using a model that considers technology flow and production costs. They found that technology transfer from developed to developing countries is linked to economic output in both regions. Economic shocks in developed countries have a significant impact on developing economies. Business cycles in developed countries lead to medium-term fluctuations in developing economies. The correlation between economic outputs is stronger than that of consumption. Interest rates in developing countries tend to move in the opposite direction of economic cycles.