The Sources of Business Cycles in a Low Income Country
Electronic Access:
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Summary:
We examine the role of global and domestic shocks in driving macroeconomic fluctuations for Ghana. We are able to study the impact of exogenous shocks including productivity, credit supply, and commodity price shocks. We identify the shocks with a combination of sign and recursive restrictions within Bayesian VAR models. As a benchmark we provide results for South Africa to document the difference between two economies with similar structures but different levels of development. We find that global shocks play a more dominant role in South Africa than in Ghana. These shocks operate through three channels: trade, credit and commodity prices.
Series:
Working Paper No. 2015/040
Subject:
Commodity price shocks Credit Foreign exchange Inflation Money Prices Production Productivity Real effective exchange rates
English
Publication Date:
February 25, 2015
ISBN/ISSN:
9781498310147/1018-5941
Stock No:
WPIEA2015040
Pages:
34
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