Measuring External Shock and Domestic Response in LDCs: Completing Ballassa's Decomposition Method
The standard method for measuring external shocks transmitted to small open economies from the world economy was originally developed by Balassa and subsequently refined by McCarthy for the World Bank and Helleiner for the UNC-TAD. This paper critically evaluates its neglect of the consequences of non-marginal changes in the exogenous variables, and sets out a corrected methodology which takes into account the second-order effects and distinguishes domestic reaction from policy response. The improved method is applied in detail to a single country (Mexico) and also to a cross-section of twenty-four LDCs for the 1970s and 1980s; and is shown to generate considerably more information than the standard method from a similar data base. © 1997 John Wiley & Sons, Ltd.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Volume (Year): 9 (1997)
Issue (Month): 5 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/journal/5102/home|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- McCarthy, F. Desmond & Dhareshwar, Ashok, 1992. "Economic shocks and the global environment," Policy Research Working Paper Series 870, The World Bank.
- Dornbusch, Rudiger & Helmers, F. Leslie C. H. (ed.), 1988. "The Open Economy: Tools for Policymakers in Developing Countries," OUP Catalogue, Oxford University Press, number 9780195207095, December.
When requesting a correction, please mention this item's handle: RePEc:wly:jintdv:v:9:y:1997:i:5:p:675-693. 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: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.