IDEAS home Printed from https://ideas.repec.org/a/aea/aejmac/v6y2014i2p207-37.html
   My bibliography  Save this article

The Effects of Global Shocks on Small Commodity-Exporting Economies: Lessons from Canada

Author

Listed:
  • Valery Charnavoki
  • Juan J. Dolado

Abstract

We propose a structural dynamic factor model of a small commodity-exporting economy, using Canada as a representative case study. Combining large panel data sets of the global and do- mestic economies, sign restrictions are used to identify relevant demand and supply shocks that explain volatility in real commod- ity prices. We quantify their dynamic e ffects on a wide variety of Canadian macro variables. We are able to reproduce all the main stylized features at business-cycle frequencies documented in the literature on this type of economies. These include a Dutch disease eff ect which has proven hard to find in empirical studies.

Suggested Citation

  • Valery Charnavoki & Juan J. Dolado, 2014. "The Effects of Global Shocks on Small Commodity-Exporting Economies: Lessons from Canada," American Economic Journal: Macroeconomics, American Economic Association, vol. 6(2), pages 207-237, April.
    • Handle: RePEc:aea:aejmac:v:6:y:2014:i:2:p:207-37
    Note: DOI: 10.1257/mac.6.2.207
    as

    Download full text from publisher

    File URL: http://www.aeaweb.org/articles.php?doi=10.1257/mac.6.2.207
    Download Restriction: no
    File URL: http://www.aeaweb.org/aej/mac/app/0602/2012-0018_app.pdf
    Download Restriction: no
    File URL: http://www.aeaweb.org/aej/mac/data/0602/2012-0018_data.zip
    Download Restriction: no
    File URL: http://www.aeaweb.org/aej/mac/ds/0602/2012-0018_ds.zip
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market
    • Q33 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Resource Booms (Dutch Disease)

    Lists

    This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:
    1. The Effects of Global Shocks on Small Commodity-Exporting Economies: Lessons from Canada (AEJ:MA 2014) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmac:v:6:y:2014:i:2:p:207-37. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.