Exposure to external country specific shocks and income volatility

We show that exposure to country specific shocks has a positive and significant impact on GDP volatility. In particular, we find that the degree to which the cycles of different trading partners are correlated is more important in explaining exporters’ GDP volatility than the volatility of demand in individual export market. We also show that geographical diversification is a significant determinant of countries' exposure to country specific shocks.

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Year of publication:	2009
Authors:	Jansen, Marion ; Lennon, Carolina ; Piermartini, Roberta
Institutions:	Economic Research and Statistics Division (ERSD), World Trade Organization (WTO)
Subject:	Income volatility \| geographical export diversification \| external shocks

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Extent:	application/pdf
Series:	WTO Staff Working Papers.
Type of publication:	Book / Working Paper
Notes:	Number ERSD-2009-04
Classification:	C23 - Models with Panel Data ; F43 - Economic Growth of Open Economies ; O19 - International Linkages to Development; Role of International Organizations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011115034