European Parliament Library

Spillovers to Low-Income Countries :, Importance of Systemic Emerging Markets, Era Dabla-Norris, Raphael Espinoza, Sarwat Jahan

This paper documents the expanding economic linkages between low-income countries (LICs) and a narrow group of "Emerging Market leaders" that have become major players in regional and global trade and financial flows. VAR models show that these linkages have increased the share of growth volatility that can be attributed to foreign shocks in LICs. Dynamic panel models further analyze the impact of LIC trade orientation and production structure on the sensitivity to foreign shocks. The empirical results demonstrate that the elasticity of growth to trading partners' growth is high for LICs in Asia, Latin America and the Caribbean, and Europe and Central Asia. However, for commodity-exporting LICs in Sub-Saharan Africa and the Middle East, terms of trade shocks and demand from the emerging market leaders are the main channels of transmission of foreign shocks
Table Of Contents
Cover; Contents; I. Introduction; II. Linkages between EMs and LICs; A. Trade Linkages; Tables; 1. EM Leaders' Export Shares from LICs; Figures; 1. Share of LIC Exports by Destination; 2. Top Ten Ranking of LICs based on Exports Share to Regional Leaders, 2008; 2. Exports Shares from all LICs, by Products and Destination Income Group; 3. Exports Shares from LICs, by Product and Destination; B. Other Linkages; 4. Remittance Flows to LICs, 2006; 3. Top Recipients of Chinese FDI; 5. EM Leaders Stock of FDI in LICs; 6. Consolidated Foreign Claims of Reporting Banks by Region, 2006-09
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (29 p.)
Specific Material Designation
Form Of Item

Library Locations

  • EP Library Brussels

    60 rue Wiertz, Brussels, B-1047, BE
  • EP Library Strasbourg

    7 Place Adrien Zeller, Allée du Printemps, Strasbourg, F-67070, FR
  • EP Library Luxembourg

    Rue du Fort Thüngen, Luxembourg, L-1313, LU