IDEAS home Printed from https://ideas.repec.org/a/afe/journl/v3y1998i1p1-42.html
   My bibliography  Save this article

External Shocks and Economic Dynamics: The Case of African Countries

Author

Listed:
  • M. Ayhan Kose

    (Brandeis University)

  • Raymond Riezman

    (University of Iowa)

Abstract

A number of African economies have highly concentrated export and import sectors. Moreover, their export revenues are highly unstable due to recurrent and sharp variations in the prices of main export goods. This paper examines the role of external shocks, which are represented by the fluctuations in the prices of main export and import items, in explaining economic fluctuations in African economies. We construct a stochastic, dynamic, multi-sector small open economy model calibrated to reflect structural characteristics of a typical African economy. Our results suggest that external shocks account for a significant fraction of economic fluctuations in African economies. IN particular, more than 45 percent of aggregate output fluctuations and almost 78 percent of investment fluctuations are explained by the external shocks.

Suggested Citation

  • M. Ayhan Kose & Raymond Riezman, 1998. "External Shocks and Economic Dynamics: The Case of African Countries," Journal of African Development, African Finance and Economic Association, vol. 3(1), pages 1-42.
  • Handle: RePEc:afe:journl:v:3:y:1998:i:1:p:1-42
    as

    Download full text from publisher

    File URL: http://www.jadafea.com/wp-content/uploads/2014/07/JAD_vol3_Chp1.pdf
    Download Restriction: no

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marco Gallegati & Mauro Gallegati & Wolfgang Polasek, 2004. "Business Cycle Fluctuations in Mediterranean Countries (1960-2000)," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 40(6), pages 28-47, November.
    2. Sinn, Hans-Werner, 1999. "Inflation and Welfare: Comment on Robert Lucas," CEPR Discussion Papers 2111, C.E.P.R. Discussion Papers.
    3. Marco Gallegati & Mauro Gallegati & Wolfgang Polasek, 2004. "Business Cycle Fluctuations in Mediterranean Countries (1960-2000)," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 40(6), pages 28-47, November.

    More about this item

    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:afe:journl:v:3:y:1998:i:1:p:1-42. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mwangi wa Githinji). General contact details of provider: http://edirc.repec.org/data/afeaaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.