Commodity Windfalls, Democracy and External Debt

Arezki, Rabah; Brückner, Markus

doi:10.1111/j.1468-0297.2012.02508.x

Cited by 73 publications

(41 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…The literature has quantified commodity price shocks through two approaches. The first approach uses the change in price as a metric for shocks (Arezki & Brückner, ; Brückner & Ciccone, ). This method computes a country‐specific index using the following formula:

P r i c e S h o c k s_{i, t} = \sum_{ceC} {normalθ}_{i, c} Δ log (C o m P r i c e_{c, t}),

where

(C o m P r i c e_{c, t})

is the international price of commodity c in year t , and

θ_{i, c}

is the average (time‐invariant) value of exports of commodity c in the GDP of country i .…”

Section: Data Measurement Issues and Stylised Factsmentioning

confidence: 99%

“…The literature has quantified commodity price shocks through two approaches. The first approach uses the change in price as a metric for shocks (Arezki & Br€ uckner, 2012;Br€ uckner & Ciccone, 2010). This method computes a country-specific index using the following formula:…”

Section: Price Shock Measuresmentioning

confidence: 99%

“…While commodity markets may be undergoing a transition to a new era of low prices, such a sharp decline is not unprecedented. The frequent occurrence of commodity price shocks has led to a large number of studies analysing the impact of lower commodity prices on various variables such as economic growth (Deaton & Miller, ; Dehn, ), debt (Arezki & Brückner, ; Arezki & Ismail, ) and conflict (Brückner & Ciccone, ).…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Do commodity price shocks weaken the financial sector?

2018

View full text Add to dashboard Cite

This paper investigates the impact of commodity price shocks on financial sector fragility. Using a large sample of 71 commodity exporters among emerging and developing economies, it shows that negative shocks to commodity prices tend to weaken the financial sector, with larger shocks having more pronounced impacts. More specifically, negative commodity price shocks are associated with higher non‐performing loans, bank costs and banking crises, while they reduce bank profits, liquidity and provisions to non‐performing loans. These adverse effects tend to occur in countries with poor quality of governance, weak fiscal space, as well as those that do not have a sovereign wealth fund, do not implement macroprudential policies and do not have a diversified export base. These findings are robust to a battery of robustness checks.

show abstract

P r i c e S h o c k s_{i, t} = \sum_{ceC} {normalθ}_{i, c} Δ log (C o m P r i c e_{c, t}),

where

(C o m P r i c e_{c, t})

is the international price of commodity c in year t , and

θ_{i, c}

is the average (time‐invariant) value of exports of commodity c in the GDP of country i .…”

Section: Data Measurement Issues and Stylised Factsmentioning

confidence: 99%

Section: Price Shock Measuresmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Do commodity price shocks weaken the financial sector?

2018

View full text Add to dashboard Cite

show abstract

“…Both models lead to qualitatively the same results and thus only results that include GDP per capita growth are shown. Finally note that following others (see Arezki and Brückner, 2012, Cuberes and Jerzmanowski, 2009and Iyigun and Owen, 2004, we estimate (2) with panel least squares and cluster-robust standard errors at the country level to control for autocorrelation and/or heteroskedasticity.…”

Section: Methodsmentioning

confidence: 99%

Child mortality, commodity price volatility and the resource curse

Makhlouf

Kellard

Vinogradov

2017

Social Science & Medicine

View full text Add to dashboard Cite

Given many developing economies depend on primary commodities, the fluctuations of commodity prices may imply significant effects for the wellbeing of children. To investigate, this paper examines the relationship between child mortality and commodity price movements as reflected by country-specific commodity terms-of-trade. Employing a panel of 69 low and lower-middle income countries over the period 1970-2010, we show that commodity terms-of-trade volatility increases child mortality in highly commodity-dependent importers suggesting a type of 'scarce' resource curse. Strikingly however, good institutions appear able to mitigate the negative impact of volatility. The paper concludes by highlighting this tripartite relationship between child mortality, volatility and good institutions and posits that an effective approach to improving child wellbeing in low to lower-middle income countries will combine hedging, import diversification and improvement of institutional quality.

show abstract

“…The alternative measure of commodity price shocks followsArezki and Brückner (2012) andBrückner and Ciccone (2010), and measures commodity price shocks by changes in prices.…”

mentioning

confidence: 99%

Financial Development in Sub-Saharan Africa

2016

View full text Add to dashboard Cite

Commodity Windfalls, Democracy and External Debt

Cited by 73 publications

References 35 publications

Do commodity price shocks weaken the financial sector?

Do commodity price shocks weaken the financial sector?

Child mortality, commodity price volatility and the resource curse

Financial Development in Sub-Saharan Africa

Contact Info

Product

Resources

About