Have North-South Growth Linkages Changed?

Author/Editor:

Alexander W. Hoffmaister ; Mahmood Pradhan ; Hossein Samiei

Publication Date:

May 1, 1996

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper provides preliminary econometric evidence suggesting that the traditional trade-based business cycle linkages between the North and the South have changed. Many countries in the South, in particular in Asia, appear to have become more resilient to cyclical movements in the North, and to have come to play a more significant role in sustaining global activity, in particular during the 1991-93 slowdown. A number of factors may have contributed to these changes: improved domestic policies and more open trade and exchange regimes; closer financial linkages with the North and a substantial increase in capital flows; a marked rise in inter-regional trade; and greater diversification of the exports of the South.

Series:

Working Paper No. 96/54

Subject:

English

Publication Date:

May 1, 1996

ISBN/ISSN:

9781451969627/1018-5941

Stock No:

WPIEA0541996

Format:

Paper

Pages:

38

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