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A re-estimation of the impact of the subprime crisis on the economic growth of some emerging countries: Vector-Error correction model

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  • Kamel HELALI

    (Department of Applied Quantitative Methods, Faculty of Economics and Management of Sfax, University of Sfax. Tunisia)

  • Mouna REKIK

    (Department of Applied Quantitative Methods, Faculty of Economics and Management of Sfax, University of Sfax. Tunisia)

Abstract

This paper deals with the analysis of a group of emerging countries so as to identify the scale of the subprime crisis on their economic growth. In this context, we will discuss a panel data analysis. We will try to econometrically examine the real impact of the crisis on the economic growth in six emerging countries through five channels: the interest rate channel, the wealth impact channel, the bank lending channel, the shock and uncertainty channel and the trade channel, over the period 2002-2011. According to the estimates of the VECM model, there is a long-run relationship between the consumer price index, the exports and the interbank spread on economic growth. However, the long-run estimate indicates no relationship between economic growth and volatility and the stock price performance.

Suggested Citation

  • Kamel HELALI & Mouna REKIK, 2014. "A re-estimation of the impact of the subprime crisis on the economic growth of some emerging countries: Vector-Error correction model," E3 Journal of Business Management and Economics., E3 Journals, vol. 5(3), pages 063-070.
    • Handle: RePEc:etr:series:v:5:y:2014:i:03:p:063-070
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    References listed on IDEAS

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