How do world commodity prices affect Asian commodity exporting economies? The role of financial frictions
Year: 2021
Type: article
Abstract: This note examines how recent volatile fluctuations of world commodity prices due to the COVID-19 shock affect Asian commodity exporting economies. Our analysis shows that a drop in world commodity prices has a significant negative impact on output, consumption, and investment of sample countries. However, the impact on trade balance is positive in some countries and negative in others. The difference between these two groups is attributable to whether world commodity prices affect each country’s interest rate spreads.
Source: Applied Economics Letters
Author: Shigeto Kitano
Institution: Kobe University
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: hybrid
Awards: Risk Management of Comprehensive Monetary/Fiscal Policy: From Financial Crises to International Relations and Natural Disasters, Development of a regional financial model that meets regional expectations-Disaster Resilience, Population Decline, and FinTech, Risks underlying in the global expansion of private debt and macroeconomic policies in emerging economies, Macroeconomic policies to manage possible massive capital outflows from emerging economies due to monetary policy normalization in advanced economies
OpenAlex ID: W3083131224