Domestic Amplifiers of External Shocks: Growth Accelerations and Reversals in Emerging Market and Developing Economies

Bertrand Gruss, Malhar Nabar and Marcos Poplawski Ribeiro
Authors registered in the RePEc Author Service: Marcos Poplawski-Ribeiro

No 2019/128, IMF Working Papers from International Monetary Fund

Abstract: External conditions have been found to influence the tendency of emerging market and developing economies to experience episodes of growth accelerations and reversals. In this paper we study the role of domestic policies and other structural attributes in amplifying or mitigating the effect that shifts in external conditions have on growth patterns in emerging market and developing economies over the past five decades. We find that these economies can enhance the growth impulse from external conditions by strengthening their institutional frameworks and adopting a policy mix that protects trade integration; permits exchange rate flexibility; and ensures that vulnerabilities stemming from high current account deficits and external debt, as well as high public debt, are contained.

Keywords: WP; domestic policy; terms of trade (search for similar items in EconPapers)
Pages: 27
Date: 2019-06-17
New Economics Papers: this item is included in nep-opm
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Citations: View citations in EconPapers (1)

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