Article ID Journal Published Year Pages File Type
5083948 International Review of Economics & Finance 2012 20 Pages PDF
Abstract
This paper uses a tri-variate structural VAR with a long-run identification scheme, akin to the Blanchard and Quah method, to identify external and domestic supply and demand shocks in 22 African countries between 1980 and 2005. Domestic supply shocks are found to be the most important factor contributing over 70% to output fluctuations in these countries, with external shocks playing a relatively minor role. A partial correlation analysis between the identified shocks and a measure of the fiscal policies of the countries revealed that the fiscal policies pursued by most of the countries during the period are counter-cyclical.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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