Exogenous Shocks and Growth Crises in Low-Income Countries: A Vulnerability Index

This paper develops a new index which provides early warning signals of a growth crisis in the event of large external shocks in low-income countries. Multivariate regression analysis and a univariate signaling approach are used to map information from a parsimonious set of underlying policy, struct...

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Bibliographic Details
Main Author: Dabla-Norris, Era (Author)
Format: Electronic eBook
Language:English
Published: Washington, D.C International Monetary Fund 2012
Series:IMF Working Papers Working Paper No. 12/264
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Summary:This paper develops a new index which provides early warning signals of a growth crisis in the event of large external shocks in low-income countries. Multivariate regression analysis and a univariate signaling approach are used to map information from a parsimonious set of underlying policy, structural, and institutional indicators into a composite vulnerability index. The results show that vulnerabilities to a growth crisis in low-income countries declined significantly from their peaks in the early 1990s, but have risen in recent years as fiscal policy buffers were expended in the wake of the global financial crisis
Physical Description:1 Online-Ressource (41 p)
ISBN:1475528515
9781475528510

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