External Shocks and Economic Dynamics: The Case of African Countries

Ayhan Kose and Raymond Riezman

Journal of African Development, 1998, vol. 3, issue 1, 1-42

Abstract: A number of African economies have highly concentrated export and import sectors. Moreover, their export revenues are highly unstable due to recurrent and sharp variations in the prices of main export goods. This paper examines the role of external shocks, which are represented by the fluctuations in the prices of main export and import items, in explaining economic fluctuations in African economies. We construct a stochastic, dynamic, multi-sector small open economy model calibrated to reflect structural characteristics of a typical African economy. Our results suggest that external shocks account for a significant fraction of economic fluctuations in African economies. IN particular, more than 45 percent of aggregate output fluctuations and almost 78 percent of investment fluctuations are explained by the external shocks.

Date: 1998
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.afeawpapers.org/RePEc/afe/afe-journl/wp ... 07/JAD_vol3_Chp1.pdf (application/pdf)

Related works:
Working Paper: External Shocks and Economic Dynamics: The Case of African Countries (1998)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afe:journl:v:3:y:1998:i:1:p:1-42

Access Statistics for this article

More articles in Journal of African Development from African Finance and Economic Association (AFEA) Contact information at EDIRC.
Bibliographic data for series maintained by Christian Nsiah ().