On the Asymmetry of Global Spillovers: Emerging Markets Versus Advanced Economies

31 Pages Posted: 4 Dec 2018 Last revised: 7 Dec 2018

See all articles by Rabah Arezki

Rabah Arezki

World Bank - African Development Bank

Yang Liu

The University of Hong Kong - Faculty of Business and Economics

Date Written: December 3, 2018

Abstract

This paper examines growth spillovers between emerging markets and advanced economies. The empirical results, based on a two-bloc setup and cover 1991 to 2015, are twofold. First, the paper shows that the size of the spillovers running from emerging markets to advanced economies is about a fifth of those running from advanced economies to emerging markets. Second, the results point to spillovers from emerging markets to advanced economies having increased over the second half of the sample period. The paper presents suggestive evidence that the (evolving) structure of interdependencies plays an important role in explaining the existence of "asymmetrical spillovers" between these similar size blocs.

Keywords: International Trade and Trade Rules, Investment and Investment Climate, Natural Disasters, Energy and Environment, Energy Demand, Energy and Mining, Regional Urban Development

Suggested Citation

Arezki, Rabah and Liu, Yang, On the Asymmetry of Global Spillovers: Emerging Markets Versus Advanced Economies (December 3, 2018). World Bank Policy Research Working Paper No. 8662, Available at SSRN: https://ssrn.com/abstract=3295389

Rabah Arezki (Contact Author)

World Bank - African Development Bank ( email )

15 Avenue du Ghana
P.O.Box 323-1002
Tunis-Belvedère
Tunisia

Yang Liu

The University of Hong Kong - Faculty of Business and Economics ( email )

Pokfulam Road
Hong Kong
China

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