Rising BRIC and Changes in Sub‐Saharan Africa's Business Cycle Patterns

25 Pages Posted: 3 Feb 2016

See all articles by Oumar Diallo

Oumar Diallo

United Nations

Sampawende Tapsoba

International Monetary Fund (IMF)

Date Written: February 2016

Abstract

This paper assesses the extent to which Sub‐Saharan Africa (SSA)'s business cycle is synchronized with that of the rest of the world (RoW). SSA's business cycle has not only moved in the same direction as that of the RoW, but has also gradually drifted away from the G7 in favor of the BRIC. Trade with the BRIC has been the strongest driver of this shift. As fiscal policy stances in SSA and the BRIC are not synchronized, they have not caused output correlation. Also, financial openness, which is at an early stage in SSA, has acted as a neutral force.

Suggested Citation

Diallo, Oumar and Tapsoba, Sampawende, Rising BRIC and Changes in Sub‐Saharan Africa's Business Cycle Patterns (February 2016). The World Economy, Vol. 39, Issue 2, pp. 260-284, 2016, Available at SSRN: https://ssrn.com/abstract=2726952 or http://dx.doi.org/10.1111/twec.12273

Oumar Diallo (Contact Author)

United Nations ( email )

New York, NY 10017
United States

Sampawende Tapsoba

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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