TY - BOOK ID - 133684746 TI - Characterizing the Business Cycles of Emerging Economies AU - Calderon, Cesar AU - Fuentes, Rodrigo PY - 2010 PB - Washington, D.C., The World Bank, DB - UniCat KW - Banks & Banking Reform KW - Business cycle KW - Business cycles KW - Central bank KW - Commodity prices KW - Credit markets KW - Currencies and Exchange Rates KW - Debt Markets KW - Domestic credit KW - Economic policies KW - Economic Theory & Research KW - Emerging economies KW - Emerging market KW - Emerging market economies KW - Emerging Markets KW - Exchange rate KW - Finance and Financial Sector Development KW - Financial markets KW - Financial shocks KW - Interest rate KW - International bank KW - Macroeconomic volatility KW - Macroeconomics and Economic Growth KW - Output loss KW - Private Sector Development KW - Tax KW - Trade regime UR - https://www.unicat.be/uniCat?func=search&query=sysid:133684746 AB - Using the dating algorithm by Harding and Pagan (2002) on a quarterly database for 23 emerging market economies (EMEs) and 12 developed countries over the period 1980.Q1 - 2006.Q2, the authors proceed to characterize and compare the business cycle features of these two groups. They first find that recessions are deeper and more frequent among EMEs (especially, among LAC countries) and that expansions are more sizable and longer (especially, among East Asian countries). After this characterization, this paper explores the linkages between the cost of recessions (as measured by the average annual rate of output loss in the peak-to-trough phase of the cycle) and several country-specific factors. The main findings are: (a) adverse terms of trade shocks raises the cost of recessions in countries with a more open trade regime, deeper financial markets and, surprisingly, a more diversified output structure. (b) U.S. interest rate shocks seem to have a significant impact on the cost of recessions in East Asian countries. (c) Recessions tend to be deeper if they coincide with a sudden stop, but the effect tends to be mitigated in countries with deeper domestic credit markets. (d) Countries with stronger institutions tend to have less costly recessions. ER -