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The Effect of External Conditions on Growth in Latin America Author info | Abstract | Publisher info | Download info | Related research | Statistics Pär Österholm
Jeromin Zettelmeyer
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This paper investigates the sensitivity of Latin American GDP growth to external developments using a Bayesian VAR model with informative steady-state priors. The model is estimated on quarterly data from 1994 to 2006 on key external and Latin American variables. It finds that 50 to 60 percent of the variation in Latin American GDP growth is accounted for by external shocks. Conditional forecasts for a variety of external scenarios suggest that Latin American growth is robust to moderate declines in commodity prices and U.S. or world growth, but sensitive to more extreme shocks, particularly a combined external slowdown and tightening of world financial conditions.
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Paper provided by International Monetary Fund in its series IMF Working Papers with number
07/176.
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Length: 36 pages
Date of creation: 23 Jul 2007Date of revision:
Handle: RePEc:imf:imfwpa:07/176Contact details of provider: Postal: International Monetary Fund, Washington, DC USA Phone: (202) 623-7000 Fax: (202) 623-4661 Email: Web page: http://www.imf.org/external/pubind.htm More information through EDIRC
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Keywords: Working Paper ; Latin America ; Economic growth ; Business cycles ; Economic growth ; Commodity prices ; Other versions of this item:
This paper has been announced in the following NEP Reports :
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