Have North-South Growth Linkages Changed?
May 1, 1996
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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.
Subject: Balance of payments, Capital flows, Export diversification, Exports, Foreign direct investment, International trade, Production, Production growth
Keywords: Asia and Pacific, Capital flows, commodity export, developing country, developing country export, developing country region, Europe, export, Export diversification, export share, Exports, Foreign direct investment, growth rate, industrial country, Middle East, North America, Production growth, regions export, significance level, stabilization scheme, superscripts n, trade linkage, Western Hemisphere, world export, WP
Pages:
38
Volume:
1996
DOI:
Issue:
054
Series:
Working Paper No. 1996/054
Stock No:
WPIEA0541996
ISBN:
9781451969627
ISSN:
1018-5941
