Emerging Markets: Resilience and Growth amid Global Turmoil

摘要

Globalization has woven tight linkages between emerging market and developed economies over the last two decades. Understanding how these linkages have shaped the characteristics of the macroeconomic fluctuations of emerging market and developed countries is of interest to academic research and important for policy formation. Existing theoretical studies offer ambiguous predictions about how globalization should affect output fluctuations in each country group and the synchronization of business cycles across them. Predictions also depend on the level of development, the nature of shocks, the degree of market frictions and the pattern of specialization. Instead of relying on the subtleties of theory, Kose and Prasad focus on the data.