Are external shocks responsible for the instability of output in low income countries?
By: Claudio Raddatz.
Contributors: World Bank.
Series: Policy research working paper ;; 3680; Policy research working papers (Online) ;; 3680.
Publisher: World Bank
Published: 2005
Place of publication: [Washington, D.C
Language: eng
Format: Electronic resource
Subjects: Business cycles -- Developing countries.; Industrial productivity -- Developing countries.
Description: "External shocks, such as commodity price fluctuations, natural disasters, and the role of the international economy, are often blamed for the poor economic performance of low-income countries.  The author quantifies the impact of these different external shocks using a panel vector autoregression (VAR) approach and compares their relative contributions to output volatility in low-income countries vis-&agrave;-vis internal factors.  He finds that external shocks can only explain a small fraction of the output variance of a typical low-income country.  Internal factors are the main source of fluctuations.  From a quantitative perspective, the output effect of external shocks is typically small in absolute terms, but significant relative to the historic performance of these countries. "--World Bank web site.
Notes: Includes bibliographical references.
Title from PDF file as viewed on 9/1/2005.
Also available in print.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.