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The Rising Resilience of Emerging Market and Developing Economies

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  • Abdul d Abiad
  • John C Bluedorn
  • Jaime Guajardo
  • Petia Topalova

Abstract

Economic performance in many emerging market and developing economies (EMDEs) improved substantially over the past twenty years. The past decade was particularly good—for the first time EMDEs spent more time in expansion and had smaller downturns thanadvanced economies. In this paper we document the history of EMDEs’ resilience over the past sixty years, and investigate what factors have been associated with it. We find that their improved performance in recent years is accounted for by both good policies and a lowerincidence of external and domestic shocks—better policies account for about three-fifths of their improved resilience, while less frequent shocks account for the remainder.

Suggested Citation

  • Abdul d Abiad & John C Bluedorn & Jaime Guajardo & Petia Topalova, 2012. "The Rising Resilience of Emerging Market and Developing Economies," IMF Working Papers 12/300, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:12/300
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    1. repec:bla:afrdev:v:29:y:2017:i:2:p:139-154 is not listed on IDEAS
    2. Zuzana Brixiova & Qingwei Meng & Mthuli Ncube, 2015. "Can Intra-Regional Trade Act as a Global Shock Absorber in Africa?," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 16(3), pages 141-162, July.
    3. John C Bluedorn & Rupa Duttagupta & Jaime Guajardo & Nkunde Mwase, 2013. "The Growth Comeback in Developing Economies; A New Hope or Back to the Future?," IMF Working Papers 13/132, International Monetary Fund.
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    5. Pesce, Antonio, 2014. "International (spillovers in) macrofinancial linkages and the decoupling phenomenon," Journal of International Money and Finance, Elsevier, vol. 48(PA), pages 41-67.
    6. Feryel Ouerghi, 2013. "Global Financial Crisis: Did Exchange Rate Politics Help Emerging Countries To Be More Resilient," International Journal of Economics and Financial Issues, Econjournals, vol. 3(4), pages 949-963.
    7. Kristian Behrens & Brahim Boualam & Julien Martin, 2016. "The resilience of the Canadian textile industries and clusters to shocks, 2001-2013," CIRANO Project Reports 2016rp-05, CIRANO.
    8. Eric Rougier & Riana Razafimandimby Andrianjaka, 2017. "What difference does it make (when a middle-income country is caught in the trap)? An evidence-based survey analysis of the determinants of Middle-Income Traps," Cahiers du GREThA 2017-16, Groupe de Recherche en Economie Théorique et Appliquée.

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