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

This paper assesses the extent to which S ub‐ S aharan A frica ( SSA )'s business cycle is synchronized with that of the rest of the world ( R o W ). SSA 's business cycle has not only moved in the same direction as that of the R o W , but has also gradually drifted away from the G 7 in fa...

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Bibliographic Details
Published in:World economy 2016-02, Vol.39 (2), p.260-284
Main Authors: Diallo, Oumar, Tapsoba, Sampawende J.‐A.
Format: Article
Language:English
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Summary:This paper assesses the extent to which S ub‐ S aharan A frica ( SSA )'s business cycle is synchronized with that of the rest of the world ( R o W ). SSA 's business cycle has not only moved in the same direction as that of the R o W , but has also gradually drifted away from the G 7 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.
ISSN:0378-5920
1467-9701
DOI:10.1111/twec.12273