Network Effects of International Shocks and Spillovers
Electronic Access:
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Summary:
This paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in one country on all other countries. The paper concludes that 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, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively.
Series:
Working Paper No. 2015/149
Subject:
Export earnings Exports Financial sector policy and analysis Imports International trade Spillovers Trade balance
English
Publication Date:
July 7, 2015
ISBN/ISSN:
9781513542928/1018-5941
Stock No:
WPIEA2015149
Pages:
43
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