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dc.titleBooms and Busts in Latin America: The Role of External Factors
dc.contributor.authorIzquierdo, Alejandro
dc.contributor.authorRomero, Randall
dc.contributor.authorTalvi, Ernesto
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageThe Caribbean
dc.coverageCentral America
dc.coverageSouth America
dc.date.available2011-02-07T00:00:00
dc.date.issue2008-02-01T00:00:00
dc.description.abstractThis paper analyzes the relevance of external factors in average quarterly GDP growth for 1990-2006 in the seven largest Latin American countries (LAC7). Modeling the relationship between LAC7 GDP and several external factors, it is found that those factors account for a significant share of variance in LAC7 GDP growth, and that external shocks produce significant responses. Likewise, a significant share of recent LAC7 growth performance can be explained by an external factor tailwind. Also evaluated is the impact of deterioration in external financial conditions. Finally, the relevance of these findings for policy evaluation is emphasized. Growth performance, the strength or weakness of macroeconomic fundamentals and the impact of domestic macro and micro policies on growth can only be properly appraised by first filtering out the effects of external factors.
dc.identifier.doihttp://dx.doi.org/10.18235/0010885
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Booms-and-Busts-in-Latin-America-The-Role-of-External-Factors.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectEconomy
dc.subject.jelcodeF31 - Foreign Exchange
dc.subject.jelcodeF32 - Current Account Adjustment • Short-Term Capital Movements
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeF41 - Open Economy Macroeconomics
dc.subject.keywordsWP-631
dc.typeWorking Papers
idb.identifier.pubnumberWorking Papers
idb.operationRG-N2340
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