EconPapers    
Economics at your fingertips  
 

How important are spillovers from major emerging markets?

Raju Huidrom, Ayhan Kose, Hideaki Matsuoka and Franziska Ohnsorge

International Finance, 2020, vol. 23, issue 1, 47-63

Abstract: The seven largest emerging market economies—China, India, Brazil, Russia, Mexico, Indonesia, and Turkey—constituted more than one‐quarter of global output and more than half of global output growth during 2010–2015. These emerging markets, which we call EM7, are also closely integrated with other countries, especially with other emerging and frontier markets (FMs). Given their size and integration, growth in EM7 could have significant cross‐border spillovers. We provide empirical estimates of these spillovers using a Bayesian vector autoregression model. We report three main results. First, spillovers from EM7 are sizeable: a 1 percentage point increase in EM7 growth is associated with an 0.9 percentage point increase in growth in other emerging and FMs and a 0.6 percentage point increase in world growth at the end of 3 years. Second, sizeable as they are, spillovers from EM7 are still smaller than those from G7 countries (group of seven of advanced economies). Specifically, growth in other emerging and FMs, and the global economy would increase by one‐half to three times more due to a similarly sized increase in G7 growth. Third, among the EM7, spillovers from China are the largest and permeate globally.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://doi.org/10.1111/infi.12350

Related works:
Working Paper: How Important are Spillovers from Major Emerging Markets? (2017) Downloads
Working Paper: How important are spillovers from major emerging markets? (2017) Downloads
Working Paper: How Important are Spillovers from Major Emerging Markets? (2017) Downloads
Working Paper: How important are spillovers from major emerging markets ? (2017) Downloads
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:bla:intfin:v:23:y:2020:i:1:p:47-63

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1367-0271

Access Statistics for this article

International Finance is currently edited by Benn Steil

More articles in International Finance from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2025-03-22
Handle: RePEc:bla:intfin:v:23:y:2020:i:1:p:47-63