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Compounded Effects of External Crises on GDP Growth

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  • Martin Melecky

    (School of Economics, University of New South Wales, Sydney NSW 2062, Australia.)

Abstract

This paper attempts to quantify possible negative effects of external crises on output in emerging market economies. The external crises considered are the current account reversals and currency crises. The direct effect (on GDP growth) and the indirect effect (through growth determinants) of an external crisis are estimated and compounded into an overall effect. An alternative approach to the analysis of the adjustment dynamics is applied. Comparative Economic Studies (2007) 49, 642–659. doi:10.1057/palgrave.ces.8100217

Suggested Citation

  • Martin Melecky, 2007. "Compounded Effects of External Crises on GDP Growth," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 49(4), pages 642-659, December.
    • Handle: RePEc:pal:compes:v:49:y:2007:i:4:p:642-659
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    References listed on IDEAS

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    1. Abdel-Baki Monal A., 2012. "The Impact of Basel III on Emerging Economies," Global Economy Journal, De Gruyter, vol. 12(2), pages 1-33, June.

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