Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75488
Authors: 
Kose, M. Ayhan
Riezman, Raymond
Year of Publication: 
1999
Series/Report no.: 
CESifo Working Paper 203
Abstract: 
This 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 economy. In our framework, external shocks consist of trade shocks, modeled a s 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. Our results indicate that while trade shocks account for roughly 45 percent of economic fluctuations in aggregate output, financial shocks play only a minor role. We also find that adverse trade shocks induce prolonged recessions.
Subjects: 
Trade shocks
dynamic stochastic quantitative trade model
African economies
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.