Terms of Trade Shocks in Africa Are They Short-Lived or Long-Lived?
By Paul Cashin, Catherine A. Pattillo. Social Science Research Network, 2000
121 citations recorded by the source corpus.
This paper examines the persistence of shocks to the terms of trade, using annual data on 42 Sub-Saharan African countries between 1960-96. We find that the persistence of terms of trade shocks varies widelyfor about half the countries such shocks are short-lived, while for one-third of the countries such shocks are long-lived. The countries experiencing long-lived terms of trade shocks are typically those that have large shares of petroleum imports in total imports, small shares of nonfuel commodity exports in total exports, and are highly concentrated in exportable commodities with long-lived price shocks.
Subfields: Development, Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/89622e62d8ce0059f138c8ba0302ae242bd49ec2
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Citations in the corpus
- Who Can Explain the Mauritian Miracle: Meade, Romer, Sachs or Rodrik? (2001, unknown): “The importance of production shocks, indeed for the greater impact of these shocks for Mauritius compared with the average commodity exporting countries, is suggested by an interesting result in Cashin and Patillo (2000) .”
- The Growing Relationship Between China and Sub-Saharan Africa (2007, background): “In the past, difficulty in predicting the likely duration of price shocks has limited the ability of African policymakers to manage commodity booms and slumps (Cashin and Pattillo 2000).”