IDEAS home Printed from https://ideas.repec.org/a/aic/revebs/y2014d14assoumouellag.html
   My bibliography  Save this article

International Prices, Monetary And Income Shocks: A Svar Model Of The External Trade Channel In African Economies

Author

Listed:
  • Giscard ASSOUMOU ELLA

    (Université Omar Bongo, Gabon)

  • Cécile BASTIDON
  • Philippe GILLES

Abstract

We study the effects of international monetary, income and prices shocks on domestic income through the external trade channel in 16 African countries between 1970 and 2012, using a SVAR Model. The results emphasize that domestic income is exposed to international shocks through the impacts of these shocks on export and import flows of goods and services. The intensity of this exposure depends on the transmission channel, type of external shock, specialization of each country and domestic public policies. All the countries of the sample are at least exposed to one international shock. 13 countries are exposed to real GDP OECD per capita shock, 10 countries to harmonized inflation in OECD countries. Of 7 countries that export oil products, 3 are exposed to world prices of oil through the exports channel. 5 countries are exposed to this variable through the imports channel. Only 4 countries of the sample are exposed to the FED monetary policy. Moreover, the results for domestic variables in the income equations suggest that countries impacted by an external shock could use these variables to sustain economic growth (i. e. increase public expenditure in general and investment in human and physical capital in particular).

Suggested Citation

  • Giscard ASSOUMOU ELLA & Cécile BASTIDON & Philippe GILLES, 2014. "International Prices, Monetary And Income Shocks: A Svar Model Of The External Trade Channel In African Economies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 14, pages 85-116, December.
  • Handle: RePEc:aic:revebs:y:2014:d:14:assoumouellag
    as

    Download full text from publisher

    File URL: http://www.rebs.ro/articles/pdfs/210.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Jakob de Haan & Willem van den End & Jon Frost & Christiaan Pattipeilohy & Mostafa Tabbae, 2013. "Unconventional Monetary Policy of the ECB during the Financial Crisis: An Assessment and New Evidence," SUERF 50th Anniversary Volume Chapters, SUERF - The European Money and Finance Forum.
    2. Michele Lenza & Huw Pill & Lucrezia Reichlin, 2010. "Monetary policy in exceptional times," Economic Policy, CEPR;CES;MSH, vol. 25, pages 295-339, April.
    3. Sharon Kozicki & Eric Santor & Lena Suchanek, 2011. "Unconventional Monetary Policy: The International Experience with Central Bank Asset Purchases," Bank of Canada Review, Bank of Canada, vol. 2011(Spring), pages 13-25.
    4. repec:wsi:wschap:9789813236592_0001 is not listed on IDEAS
    5. G. Peersman, 2014. "The Effectiveness of Unconventional Monetary Policies," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 14/875, Ghent University, Faculty of Economics and Business Administration.
    6. Martina Cecioni & Giuseppe Ferrero & Alessandro Secchi, 2018. "Unconventional Monetary Policy in Theory and in Practice," World Scientific Book Chapters, in: Innovative Federal Reserve Policies During the Great Financial Crisis, chapter 1, pages 1-36, World Scientific Publishing Co. Pte. Ltd..
    7. Judit Krekó & Csaba Balogh & Kristóf Lehmann & Róbert Mátrai & György Pulai & Balázs Vonnák, 2013. "International experiences and domestic opportunities of applying unconventional monetary policy tools," MNB Occasional Papers 2013/100, Magyar Nemzeti Bank (Central Bank of Hungary).
    8. Jean-Claude Trichet, 2013. "Unconventional Monetary Policy Measures: Principles-Conditions-Raison d’etre," International Journal of Central Banking, International Journal of Central Banking, vol. 9(1), pages 229-250, January.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. António Afonso & Joana Sousa-Leite, 2019. "The transmission of unconventional monetary policy to bank credit supply: evidence from the TLTRO," Working Papers w201901, Banco de Portugal, Economics and Research Department.

    More about this item

    Keywords

    African economies; international prices shocks; international income shocks; FED monetary policy international transmission; external trade channel; SVAR model;

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

    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:aic:revebs:y:2014:d:14:assoumouellag. 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: (Sireteanu Napoleon-Alexandru). General contact details of provider: http://edirc.repec.org/data/feaicro.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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.