Characterizing the Business Cycles of Emerging Economies

Calderón, Cesar; Fuentes, Rodrigo

dc.creator	Calderón, Cesar
dc.creator	Fuentes, Rodrigo
dc.date	2012-03-19T18:40:33Z
dc.date	2012-03-19T18:40:33Z
dc.date	2010-06-01
dc.date.accessioned	2023-02-17T21:04:20Z
dc.date.available	2023-02-17T21:04:20Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100622100448
dc.identifier	http://hdl.handle.net/10986/3829
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244793
dc.description	Using the dating algorithm by Harding and Pagan (2002) on a quarterly database for 23 emerging market economies (EMEs) and 12 developed countries over the period 1980.Q1 - 2006.Q2, the authors proceed to characterize and compare the business cycle features of these two groups. They first find that recessions are deeper and more frequent among EMEs (especially, among LAC countries) and that expansions are more sizable and longer (especially, among East Asian countries). After this characterization, this paper explores the linkages between the cost of recessions (as measured by the average annual rate of output loss in the peak-to-trough phase of the cycle) and several country-specific factors. The main findings are: (a) adverse terms of trade shocks raises the cost of recessions in countries with a more open trade regime, deeper financial markets and, surprisingly, a more diversified output structure. (b) U.S. interest rate shocks seem to have a significant impact on the cost of recessions in East Asian countries. (c) Recessions tend to be deeper if they coincide with a sudden stop, but the effect tends to be mitigated in countries with deeper domestic credit markets. (d) Countries with stronger institutions tend to have less costly recessions.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5343
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ADJUSTMENT COSTS
dc.subject	ADVERSE REAL SHOCKS
dc.subject	AUDIT COMMITTEE
dc.subject	BANK POLICY
dc.subject	BANKING CRISIS
dc.subject	BANKRUPTCY
dc.subject	BANKRUPTCY LAWS
dc.subject	BANKRUPTCY PROCEDURES
dc.subject	BILL
dc.subject	BUSINESS CYCLE
dc.subject	BUSINESS CYCLES
dc.subject	BUSINESS REGULATIONS
dc.subject	CAPITAL ACCOUNT
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL INFLOWS
dc.subject	CAPITAL MARKET
dc.subject	CAPITAL MARKET DEVELOPMENT
dc.subject	CENTRAL BANK
dc.subject	CLAIMANTS
dc.subject	COLLATERAL
dc.subject	COMMODITY
dc.subject	COMMODITY PRICES
dc.subject	CONTRACT ENFORCEMENT
dc.subject	CONTROL VARIABLES
dc.subject	COUNTRY RISK
dc.subject	CREDIT CONSTRAINTS
dc.subject	CREDIT HISTORIES
dc.subject	CREDIT INFORMATION
dc.subject	CREDIT INFORMATION REGISTRIES
dc.subject	CREDIT MARKET
dc.subject	CREDIT MARKETS
dc.subject	CREDIT RATINGS
dc.subject	CREDITORS
dc.subject	CURRENCY
dc.subject	CURRENCY CRISIS
dc.subject	CURRENCY OVERVALUATION
dc.subject	CURRENT ACCOUNT
dc.subject	CURRENT ACCOUNT BALANCES
dc.subject	CYCLICAL FLUCTUATIONS
dc.subject	CYCLICAL SHOCKS
dc.subject	DEBT
dc.subject	DEBT CRISIS
dc.subject	DEBTORS
dc.subject	DEPENDENT VARIABLE
dc.subject	DEPOSIT
dc.subject	DEPOSIT MONEY BANKS
dc.subject	DEPRECIATION
dc.subject	DERIVATIVE
dc.subject	DESCRIPTIVE STATISTICS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPING ECONOMIES
dc.subject	DISTORTIONS
dc.subject	DOMESTIC CREDIT
dc.subject	DOMESTIC CURRENCY
dc.subject	DOMESTIC ECONOMY
dc.subject	DOMESTIC FINANCIAL MARKET
dc.subject	DOMESTIC FINANCIAL MARKETS
dc.subject	DOMESTIC FINANCIAL SYSTEM
dc.subject	DUMMY VARIABLE
dc.subject	DUMMY VARIABLES
dc.subject	ECONOMIC CRISIS
dc.subject	ECONOMIC GROWTH
dc.subject	ECONOMIC POLICIES
dc.subject	ECONOMIC REFORMS
dc.subject	EMERGING ECONOMIES
dc.subject	EMERGING MARKET
dc.subject	EMERGING MARKET COUNTRIES
dc.subject	EMERGING MARKET ECONOMIES
dc.subject	EMERGING MARKET ECONOMY
dc.subject	EMERGING MARKETS
dc.subject	EXCHANGE RATE
dc.subject	EXCHANGE RATE ARRANGEMENTS
dc.subject	EXCHANGE RATE REGIME
dc.subject	EXCHANGE RATE REGIMES
dc.subject	EXCHANGE RATES
dc.subject	EXOGENOUS SHOCKS
dc.subject	EXPANSIONARY PHASE
dc.subject	EXPANSIONARY PHASES
dc.subject	EXPLANATORY VARIABLE
dc.subject	EXPLANATORY VARIABLES
dc.subject	EXPROPRIATION
dc.subject	EXTERNAL DEMAND
dc.subject	EXTERNAL FACTORS
dc.subject	EXTERNAL SHOCKS
dc.subject	FACTOR MARKETS
dc.subject	FEDERAL RESERVE
dc.subject	FEDERAL RESERVE SYSTEM
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	FINANCIAL FLOWS
dc.subject	FINANCIAL INFORMATION
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL INTEGRATION
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL OPENNESS
dc.subject	FINANCIAL SHOCKS
dc.subject	FINANCIAL SYSTEM
dc.subject	FIXED EXCHANGE RATE
dc.subject	FIXED EXCHANGE RATE REGIMES
dc.subject	FLEXIBLE EXCHANGE RATE
dc.subject	FLEXIBLE EXCHANGE RATE REGIMES
dc.subject	FLEXIBLE EXCHANGE RATES
dc.subject	FLEXIBLE RATES
dc.subject	FLOATING EXCHANGE RATE
dc.subject	FLOATING EXCHANGE RATE REGIMES
dc.subject	FORECLOSURE
dc.subject	FOREIGN INTEREST
dc.subject	FOREIGN INTEREST RATE
dc.subject	FOREIGN INTEREST RATES
dc.subject	GENERAL EQUILIBRIUM
dc.subject	GENERAL EQUILIBRIUM MODEL
dc.subject	GENERAL EQUILIBRIUM MODELS
dc.subject	GLOBAL LIQUIDITY
dc.subject	GLOBALIZATION
dc.subject	GOVERNMENT POLICY
dc.subject	GROSS DOMESTIC PRODUCT
dc.subject	GROSS NATIONAL INCOME
dc.subject	GROWTH RATES
dc.subject	IMBALANCES
dc.subject	INDUSTRIAL COUNTRIES
dc.subject	INFLATION
dc.subject	INFLATION RATE
dc.subject	INSURANCE
dc.subject	INTEREST RATE
dc.subject	INTEREST RATE CAPS
dc.subject	INTEREST RATE SHOCKS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL FINANCIAL MARKETS
dc.subject	INTERNATIONAL FINANCIAL STATISTICS
dc.subject	INTERNATIONAL MARKETS
dc.subject	INTERNATIONAL TRADE
dc.subject	INVESTMENT FLOW
dc.subject	JUDICIAL PROCESS
dc.subject	LABOR MARKET
dc.subject	LABOR MARKETS
dc.subject	LEGAL PROTECTION
dc.subject	LEGAL RIGHT
dc.subject	LEGAL RIGHTS
dc.subject	LEGAL SYSTEMS
dc.subject	LENDERS
dc.subject	LESS DEVELOPED ECONOMIES
dc.subject	LEVY
dc.subject	LIQUID ASSETS
dc.subject	LIQUIDITY
dc.subject	LIQUIDITY CONDITIONS
dc.subject	LOCAL CURRENCY
dc.subject	MACROECONOMIC FLUCTUATIONS
dc.subject	MACROECONOMIC INSTABILITY
dc.subject	MACROECONOMIC POLICIES
dc.subject	MACROECONOMIC POLICY
dc.subject	MACROECONOMIC STABILITY
dc.subject	MACROECONOMIC VOLATILITY
dc.subject	MONETARY ECONOMICS
dc.subject	MONEY MARKET
dc.subject	MONEY MARKET RATE
dc.subject	NATURAL DISASTERS
dc.subject	NEGATIVE SHOCKS
dc.subject	NOTARIES
dc.subject	OPEN ECONOMIES
dc.subject	OPEN ECONOMY
dc.subject	OPTIMUM CURRENCY AREA
dc.subject	OUTPUT
dc.subject	OUTPUT LOSS
dc.subject	OUTPUT LOSSES
dc.subject	OUTPUTS
dc.subject	PERMANENT INCOME HYPOTHESIS
dc.subject	POLITICAL ECONOMY
dc.subject	POLITICAL RISK
dc.subject	POTENTIAL INVESTORS
dc.subject	PRIVATE CREDIT
dc.subject	PUBLIC REGISTRIES
dc.subject	RANDOM WALK
dc.subject	REAL EXCHANGE RATE
dc.subject	REAL EXCHANGE RATE OVERVALUATION
dc.subject	REAL INTEREST
dc.subject	REAL INTEREST RATES
dc.subject	REAL MONEY MARKET RATE
dc.subject	REAL SHOCKS
dc.subject	RECESSION
dc.subject	RECESSIONS
dc.subject	REGRESSION ANALYSIS
dc.subject	REGULATORY FRAMEWORK
dc.subject	RESERVE BANK
dc.subject	RISK PREMIUM
dc.subject	RISK SHARING
dc.subject	SAVINGS
dc.subject	SCATTER PLOTS
dc.subject	SHAREHOLDERS
dc.subject	SLOWDOWN
dc.subject	SLOWDOWNS
dc.subject	SMALL BUSINESSES
dc.subject	STANDARD DEVIATION
dc.subject	STEADY STATE
dc.subject	SUPPLY SHOCK
dc.subject	TAX
dc.subject	TRADE DEFICIT
dc.subject	TRADE OPENNESS
dc.subject	TRADE POLICY
dc.subject	TRADE REGIME
dc.subject	TRADE SHOCK
dc.subject	TRADE SHOCKS
dc.subject	VALUATION
dc.subject	WORKING CAPITAL
dc.subject	WORLD ECONOMY
dc.subject	WORLD INTEREST RATES
dc.title	Characterizing the Business Cycles of Emerging Economies
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region