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https://ruomo.lib.uom.gr/handle/7000/1824
Title: | The north-south divide, the euro and the world |
Authors: | Chisiridis, Konstantinos Mouratidis, Kostas Panagiotidis, Theodore |
Type: | Article |
Subjects: | FRASCATI::Social sciences::Economics and Business::Economics FRASCATI::Social sciences::Economics and Business::Econometrics |
Keywords: | Trade Imbalances European North–South Divide Global VAR International Linkages Spillover Effects Generalised Impulse Response Analysis |
Issue Date: | 2022 |
Source: | Journal of International Money and Finance |
Volume: | 121 |
First Page: | 102516 |
Abstract: | The European north–south divide has been an issue of a long-standing debate. We employ a Global VAR model for 28 developed and developing countries to examine the interaction between the global trade imbalances and their impact within the euro-area framework. The aim is to assess the propagation mechanisms of real shocks, focusing on the interconnections among the north euro area and the south euro area. We incorporate theory-based long-run over-identifying restrictions and examine the effects of (i) non-export real output shocks, (ii) expansionary shocks and (iii) real exchange rate shocks. An expansionary policy of the north euro area and increased competitiveness in the south euro area could alleviate trade imbalances of the debtor euro area economies. From the south euro area perspective, internal devaluation decreases output but at the same time, it also reduces current account deficits. North euro area origin shocks to domestic output exert a dominant influence in the rest of the Europe and Asia. |
URI: | https://doi.org/10.1016/j.jimonfin.2021.102516 https://ruomo.lib.uom.gr/handle/7000/1824 |
ISSN: | 0261-5606 |
Other Identifiers: | 10.1016/j.jimonfin.2021.102516 |
Appears in Collections: | Department of Economics |
Files in This Item:
File | Description | Size | Format | |
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paper_2018015_organized.pdf | jimf1 | 3,87 MB | Adobe PDF | View/Open |
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