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The Rising Resilience of Emerging Market and Developing Economies

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Author Info

  • Abdul Abiad
  • John C Bluedorn
  • Jaime Guajardo
  • Petia Topalova

Abstract

Economic performance in many emerging market and developing economies (EMDEs) improved substantially over the past twenty years. The past decade was particularly good—for the first time EMDEs spent more time in expansion and had smaller downturns thanadvanced economies. In this paper we document the history of EMDEs’ resilience over the past sixty years, and investigate what factors have been associated with it. We find that their improved performance in recent years is accounted for by both good policies and a lowerincidence of external and domestic shocks—better policies account for about three-fifths of their improved resilience, while less frequent shocks account for the remainder.

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Bibliographic Info

Paper provided by International Monetary Fund in its series IMF Working Papers with number 12/300.

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Length: 46
Date of creation: 20 Dec 2012
Date of revision:
Handle: RePEc:imf:imfwpa:12/300

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Related research

Keywords: Emerging markets; Developing countries; Economic growth; Economic recovery; low-income countries; development; expansion; recovery.; inflation; external shocks; domestic shocks; trade openness; low inflation; inflation targeting; terms of trade; real interest rate; monetary policy; commodity prices; trade liberalization; commodity exporters; monetary economics; inflation rate; exchange rate regime; investment flows; exchange rate regimes; exchange rate policies; real interest rates; output growth; current account balance; trading patterns; external position; price inflation; trade patterns; trading partners; trade regimes; foreign currency; global shocks; reserve holdings; output volatility; economic cooperation; increased trade; bilateral imports; actual inflation; current account surplus; import price; income distribution; real output; balance of payments; percent inflation; export price; open economies; domestic demand;

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References

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Citations

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Cited by:
  1. John C Bluedorn & Rupa Duttagupta & Jaime Guajardo & Nkunde Mwase, 2013. "The Growth Comeback in Developing Economies," IMF Working Papers 13/132, International Monetary Fund.
  2. Feryel Ouerghi, 2013. "Global Financial Crisis: Did Exchange Rate Politics Help Emerging Countries To Be More Resilient," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 949 - 963.

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