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Title: Identifying aggregate supply and demand shocks in small open economies: empirical evidence from African countries
Authors: Ahmad, A.H.
Pentecost, Eric J.
Keywords: African countries
Structural VAR
Issue Date: 2012
Publisher: © Elsevier
Citation: AHMAD, A.H. and PENTECOST, E.J., 2012. Identifying aggregate supply and demand shocks in small open economies: empirical evidence from African countries. International Review of Economics and Finance, 21 (1), pp. 272 - 291.
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.
Description: This article was published in the journal, International Review of Economics and Finance [© Elsevier]. The definitive version is available at: http://dx.doi.org/10.1016/j.iref.2011.08.004
Version: Accepted for publication
DOI: 10.1016/j.iref.2011.08.004
URI: https://dspace.lboro.ac.uk/2134/14016
Publisher Link: http://dx.doi.org/10.1016/j.iref.2011.08.004
ISSN: 1059-0560
Appears in Collections:Published Articles (Economics)

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