On the exposure of the BRIC countries to global economic shocks

Ansgar Belke, Christian Dreger and Irina Dubova

The World Economy, 2019, vol. 42, issue 1, 122-142

Abstract: The financial crisis led to a deep recession in many industrial countries. While large emerging countries recovered relatively quickly, their performance deteriorated in recent years, despite the modest recovery in advanced economies. The higher divergence of business cycles is closely linked to the Chinese economy. During the crisis, the Chinese fiscal stimulus prevented an abrupt decline in GDP growth not only in that country, but also in resource‐rich economies. Due to lower commodity demand, the environment became more challenging for many emerging markets in recent years. This view is supported by Bayesian structural VARs specified for the individual BRIC (Brazil, Russia, India and China) countries. The results reveal a strong impact of the international economy on GDP growth. However, in contrast to the other countries, China plays a crucial role in determining global trade and oil prices. Therefore, the Chinese economy exerts significant spillovers to the other countries under analysis. The change in the Chinese growth strategy puts additional reform pressure especially in countries with abundant natural resources.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/twec.12674

Related works:
Working Paper: On the Exposure of the BRIC Countries to Global Economic Shocks (2017)
Working Paper: On the exposure of the BRIC countries to global economic shocks (2017)
Working Paper: On the exposure of the BRIC countries to global economic shocks (2017)
Working Paper: On the Exposure of the BRIC Countries to Global Economic Shocks (2016)
Working Paper: On the exposure of the BRIC countries to global economic shocks (2016)
Working Paper: On the exposure of the BRIC countries to global economic shocks (2016)
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:worlde:v:42:y:2019:i:1:p:122-142

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0378-5920

Access Statistics for this article

The World Economy is currently edited by David Greenaway

More articles in The World Economy from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().