Arbeitspapier

Trade Shocks and Macroeconomic Fluctuations in Africa

This paper examines the role of external shocks in explaining macroeconomic fluctuations in African countries. We construct a quantitative, stochastic, dynamic, multi-sector equilibrium model of a small open economy calibrated to represent a typical African economy. In our framework, external shocks consist of trade shocks, modeled a s fluctuations in the prices of exported primary commodities, imported capital goods and intermediate inputs, and a financial shock, modeled as fluctuations in the world real interest rate. Our results indicate that while trade shocks account for roughly 45 percent of economic fluctuations in aggregate output, financial shocks play only a minor role. We also find that adverse trade shocks induce prolonged recessions.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 203

Klassifikation
Wirtschaft
Thema
Trade shocks
dynamic stochastic quantitative trade model
African economies

Ereignis
Geistige Schöpfung
(wer)
Kose, M. Ayhan
Riezman, Raymond
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
1999

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Kose, M. Ayhan
  • Riezman, Raymond
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 1999

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