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Rising BRIC and Changes in Sub‐Saharan A frica's Business Cycle Patterns
Author(s) -
Diallo Oumar,
Tapsoba Sampawende J.A.
Publication year - 2016
Publication title -
the world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/twec.12273
Subject(s) - bric , openness to experience , business cycle , economics , rest (music) , monetary economics , international economics , international trade , emerging markets , keynesian economics , finance , physics , psychology , social psychology , acoustics
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.