TY - BOOK ID - 84544127 TI - Spillovers to Low-Income Countries : Importance of Systemic Emerging Markets AU - Dabla-Norris, Era. AU - Espinoza, Raphael. AU - Jahan, Sarwat. AU - International Monetary Fund. PY - 2012 SN - 1463944969 1463944950 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - International economic integration KW - Economic development KW - Common markets KW - Economic integration, International KW - Economic union KW - Integration, International economic KW - Markets, Common KW - Union, Economic KW - International economic relations KW - Econometric models. KW - Exports and Imports KW - Finance: General KW - Macroeconomics KW - Time-Series Models KW - Dynamic Quantile Regressions KW - Dynamic Treatment Effect Models KW - Diffusion Processes KW - Business Fluctuations KW - Cycles KW - Economic Integration KW - Economic Growth of Open Economies KW - Externalities KW - Trade: General KW - International Investment KW - Long-term Capital Movements KW - General Financial Markets: General (includes Measurement and Data) KW - Commodity Markets KW - Finance KW - International economics KW - Spillovers KW - Exports KW - Foreign direct investment KW - Emerging and frontier financial markets KW - Commodity price fluctuations KW - Financial sector policy and analysis KW - International trade KW - Balance of payments KW - Financial markets KW - Prices KW - International finance KW - Investments, Foreign KW - Financial services industry KW - China, People's Republic of UR - https://www.unicat.be/uniCat?func=search&query=sysid:84544127 AB - This paper documents the expanding economic linkages between low-income countries (LICs) and a narrow group of "Emerging Market leaders" that have become major players in regional and global trade and financial flows. VAR models show that these linkages have increased the share of growth volatility that can be attributed to foreign shocks in LICs. Dynamic panel models further analyze the impact of LIC trade orientation and production structure on the sensitivity to foreign shocks. The empirical results demonstrate that the elasticity of growth to trading partners' growth is high for LICs in Asia, Latin America and the Caribbean, and Europe and Central Asia. However, for commodity-exporting LICs in Sub-Saharan Africa and the Middle East, terms of trade shocks and demand from the emerging market leaders are the main channels of transmission of foreign shocks. ER -