 Perturbaciones Internacionales y Fluctuaciones del Producto Interno Bruto en una Economía en Desarrollo: Evidencia de República Dominicana para el Período 1998-2008International Shocks and GDP fluctuations in a Developing Economy: Evidence from the Dominican Republic for the Period 1998-2008MPRA Paper from University Library of Munich, Germany Abstract: The aim of this work is to contribute to the literature of the role of foreign factors in determining the fluctuations of the Gross Domestic Product (GDP) in small, open and developing countries. The following external variables are considered: terms of trade, foreign GDP, foreign inflation and international interest rates. Using the Dominican Republic as a case study, a macroeconomic model of short-term fluctuations which considers the main mechanisms of propagation of external shocks in explaining fluctuations in GDP is specified and estimated. The simulation results suggest that external variables play an important role in generating fluctuations in the Dominican GDP. Of all the variables, the cycles of the United States output, has the greatest impact. The terms of trade shocks are transferred approximately 1 to 1 in the long term. Finally, the effects of foreign interest rates on domestic fluctuations are low and gradual. Keywords: Fluctuaciones; Macroeconomicas (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:38987 Access Statistics for this paper More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC. |
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