Emerging Market Heterogeneity: Insights from Cluster and Taxonomy Analysis

Author/Editor:

Zhongxia Zhang ; Yuan Gao

Publication Date:

July 15, 2015

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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 studies growth patterns in Emerging Market Economies (EMs) from the perspective on clusters and taxonomies. First, it documents developments over the past five decades in EMs and uses a cluster analysis to better understand convergence and the investment-growth nexus. Second, it looks at the performance of EMs since 2000 and develops a taxonomy to classify countries according to their factor endowments as well as their real and financial external linkages. The taxonomy offers insights on growth dynamics pre and post the global financial crisis. Results highlight the high degree of heterogeneity in EMs and the need for more granular and targeted near and long-term policy advice.

Series:

Working Paper No. 2015/155

Subject:

Commodities Consumption Emerging and frontier financial markets Financial crises Global financial crisis of 2008-2009 International trade National accounts Production Terms of trade Total factor productivity

English

Publication Date:

July 15, 2015

ISBN/ISSN:

9781513587622/1018-5941

Stock No:

WPIEA2015155

Pages:

33

Please address any questions about this title to publications@imf.org