EconPapers    
Economics at your fingertips  
 

Trade shocks and macroeconomic fluctuations in Africa

Ayhan Kose and Raymond Riezman

Chapter 19 in International Trade Agreements and Political Economy, 2013, pp 369-394 from World Scientific Publishing Co. Pte. Ltd.

Abstract: AbstractThis paper examines the role of external shocks in explaining macroeconomic fluctuations in African countries. We construct a quantitative, stochastic, dynamic, multi-sector equilibrium model of a small open economy calibrated to represent a "typical" African country. External shocks consist of trade shocks, modeled as fluctuations in the prices of exported primary commodities, imported capital goods and intermediate inputs, and a financial shock, modeled as fluctuations in the world real interest rate. Trade shocks account for roughly half of economic fluctuations in aggregate output. Moreover, adverse trade shocks cause prolonged recessions since they induce a significant decrease in aggregate investment

Keywords: International Trade; Political Economy; Theory of International Free Trade Agreements; Customs Unions; Tariff Dynamics; Storable Votes (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814390125_0019 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814390125_0019 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Trade shocks and macroeconomic fluctuations in Africa (2001) Downloads
Working Paper: Trade Shocks and Macroeconomic Fluctuations in Africa (1999) Downloads
Working Paper: Trade Shocks and Macroeconomic Fluctuations in Africa (1999)
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:wsi:wschap:9789814390125_0019

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().

 
Page updated 2025-03-23
Handle: RePEc:wsi:wschap:9789814390125_0019