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Agricultural Commodity Price Shocks and Their Effect on Growth in Sub-Saharan Africa

Listed author(s):
  • Addison, Tony
  • Ghoshray, Atanu

Commodity price shocks are an important type of external shock and are often cited as a problem for economic growth in sub-Saharan Africa. This paper quantifies the impact of agricultural commodity price shocks using a near vector autoregressive model. The novel aspect of this model is that we define an auxiliary variable that can potentially capture the definition of a price shock that allows us to determine whether the response of per capita Gross domestic product (GDP) growth in sub-Saharan Africa to these price shocks is asymmetric. We find that there is evidence of such asymmetric responses to commodity price shocks.

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File URL: https://www.wider.unu.edu/sites/default/files/WP2013-098.pdf
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Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series WIDER Working Paper Series with number 098.

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Length: 21
Date of creation: 2013
Handle: RePEc:unu:wpaper:wp2013-098
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