Network Effects of International Shocks and Spillovers
IMF Working Papers, July 7, 2015
Source details
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- Network Effects of International Shocks and Spillovers
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Bibliographic details
- Authors: Alexei P Kireyev, Andrei Leonidov
- Published: July 7, 2015
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781513542928.001
Authors and Publication
- Authors: Alexei P Kireyev, Andrei Leonidov
- Publication date: July 7, 2015
- Series: Working Paper No. 2015/149
- Issue: 149
- Volume: 2015
- Pages: 43
- DOI: https://doi.org/10.5089/9781513542928.001
- ISBN: 9781513542928
- ISSN: 1018-5941
- Stock No: WPIEA2015149
Research objective and method
- Proposes a method for assessing international spillovers from nominal demand shocks.
- Quantifies the impact of a shock in one country on all other countries.
- Uses an "epicenter country" framing and export-import matrices to trace shock propagation across a network of countries.
Key findings
- The network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock.
- Individual countries may amplify, absorb, or block spillovers.
- Most developed countries pass-through shocks.
- Low-income countries and oil exporters tend to block shock spillovers.
- The method is applied to demand shocks originating from a large country (China) and a medium country (Ukraine) to illustrate results.
Subject areas and keywords
- Subject: Export earnings, Exports, Financial sector policy and analysis, Imports, International trade, Spillovers, Trade balance
- Keywords: demand shock, epicenter country, Export earnings, export shock, export-import matrix, Exports, Global, import shock, Imports, network, shock spillover, shocks, spillover, Spillovers, trade, Trade balance, WP
Author and publication 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.
Source: IMF Working Paper — "Network Effects of International Shocks and Spillovers", Alexei P Kireyev and Andrei Leonidov, July 7, 2015.