Emerging Market Heterogeneity: Insights from Cluster and Taxonomy Analysis

Zhongxia Zhang and Yuan Gao

No 2015/155, IMF Working Papers from International Monetary Fund

Abstract: This paper studies growth patterns in Emerging Market Economies (EMs) from the perspective on clusters and taxonomies. First, it documents developments over the past five decades in EMs and uses a cluster analysis to better understand convergence and the investment-growth nexus. Second, it looks at the performance of EMs since 2000 and develops a taxonomy to classify countries according to their factor endowments as well as their real and financial external linkages. The taxonomy offers insights on growth dynamics pre and post the global financial crisis. Results highlight the high degree of heterogeneity in EMs and the need for more granular and targeted near and long-term policy advice.

Keywords: WP; cluster; growth rate; EMs; growth cluster; emerging markets; growth; heterogeneity; cluster analysis; taxonomy; net commodity export deficit; groups EMs; unemployment rate; commodity price booms; investment-growth-unemployment nexus; terms of trade shock; investment share; commodity-exporting EMs; EMs group; Total factor productivity; Consumption; Terms of trade; Global financial crisis of 2008-2009; Global (search for similar items in EconPapers)
Pages: 33
Date: 2015-07-15
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43085 (application/pdf)

Related works:
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:imf:imfwpa:2015/155

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().