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Current External Challenges to the Economic Expansion of Emerging Markets

Author

Listed:
  • Juan Carlos Moreno-Brid

    (Universidad Nacional Autonoma de México)

  • Lorenzo Nalin

    (Universidad Nacional Autonoma de México)

  • Edgar Perez-Medina

    (Universidad Nacional Autonoma de México)

Abstract

We present a small analytical framework, built in the Balance of Payments Constrained Growth (BPCG) tradition, tailored to identify how specific financial and structural vulnerabilities of emerging economies (EMEs) restrict their expansion. This framework is applied to shed light on the impact of global shocks and of major macro policy changes in developed countries on the growth path of six economies. As we show, this impact is conditioned by the vulnerabilities and dynamics of their insertion on international trade and capital markets and their exposure to policy changes in the developed centers. Our work shows that the BPCG-approach is a relevant, simple tool to identify EMEs' challenges in the post-covid 19 era.

Suggested Citation

  • Juan Carlos Moreno-Brid & Lorenzo Nalin & Edgar Perez-Medina, 2023. "Current External Challenges to the Economic Expansion of Emerging Markets," Working Papers Series inetwp201, Institute for New Economic Thinking.
    • Handle: RePEc:thk:wpaper:inetwp201
    DOI: 10.36687/inetwp201
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    References listed on IDEAS

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    More about this item

    Keywords

    Balance of Payment Constraint Growth Model; Current account deficit; Emerging markets' vulnerabilities; Cross-border flows;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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