Current External Challenges to the Economic Expansion of Emerging Markets

Juan Carlos Moreno-Brid (), Lorenzo Nalin and Edgar Perez-Medina
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Lorenzo Nalin: Universidad Nacional Autonoma de México
Edgar Perez-Medina: Universidad Nacional Autonoma de México

No inetwp201, Working Papers Series from Institute for New Economic Thinking

Abstract: We present a small analytical framework, built in the Balance of Payments Constrained Growth (BPCG) tradition, tailored to identify how specific financial and structural vulnerabilities of emerging economies (EMEs) restrict their expansion. This framework is applied to shed light on the impact of global shocks and of major macro policy changes in developed countries on the growth path of six economies. As we show, this impact is conditioned by the vulnerabilities and dynamics of their insertion on international trade and capital markets and their exposure to policy changes in the developed centers. Our work shows that the BPCG-approach is a relevant, simple tool to identify EMEs' challenges in the post-covid 19 era.

Keywords: Balance of Payment Constraint Growth Model; Current account deficit; Emerging markets' vulnerabilities; Cross-border flows (search for similar items in EconPapers)
JEL-codes: F32 F43 O19 (search for similar items in EconPapers)
Pages: 56 pages
Date: 2023-02-14
New Economics Papers: this item is included in nep-fdg, nep-int and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://doi.org/10.36687/inetwp201
https://www.ineteconomics.org/uploads/papers/WP_201-Moreno-et-al-BPCG.pdf First version, 2023 (application/pdf)

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