Abstract We examine the dynamic impact of household borrowing on trade balance using data from 32 developing countries and 36 developed over 1980-2020 period. Our findings suggest that is negative, both in short long run, but effects are more pronounced countries. Moreover, we find for negative effect achieved via boosting imports. In countries, stimulates imports exports, where larger.

This paper examines the role of external shocks in explaining macroeconomic fluctuations in African countries. We construct a quantitative, stochastic, dynamic, multi-sector equilibrium model of a small open economy calibrated to represent a "typical" African economy. In our framework, external shocks consist of trade shocks, modeled as fluctuations in the prices of exported primary commodities...

Increasing trade and financial flows between the world’s countries has been a double-edged sword for emerging market economies (EMEs). On the one hand, it has given EMEs ample opportunities to benefit from world economic growth and from the significant financial resources accumulated by developed countries. On the other hand, EMEs have become more vulnerable to shocks in global financial market...