Avui, dilluns 8 de juny, el Dipòsit Digital no estarà operatiu de 15:00 a 17:00 h per tasques de manteniment. Disculpeu les molèsties.
Hoy, lunes 8 de junio, el Dipòsit Digital no estará operativo de 15:00 a 17:00 h debido a tareas de mantenimiento. Disculpen las molestias.
Today, Monday, Jun 8th, the Digital Repository will be unavailable due to a system update.

Files

736495.pdf (752.44 KB)

Document type

Article

Version

Accepted version

Publication date

2019-10

Publication license

cc-by-nc-nd (c) Elsevier, 2019
Please use this identifier to cite or link to this item: https://hdl.handle.net/2445/200121

Investment specific technology shocks and emerging market business cycle dynamics

Journal Title

Authors

Director/Tutor

Journal ISSN

Volume Title

Related resource

https://doi.org/10.1016/j.red.2019.03.012

Abstract

This article explores the role played by investment-specific technology (IST) shocks in emerging market business cycle fluctuations. The analysis is motivated by two key empirical facts; the presence of IST change in the post-war US economy combined with the importance of US investment goods in the emerging market imports. The goal is to quantify the contribution of US IST change for the business cycles of an emerging country in the context of a two-country, two-sector international real business cycle framework with investment and consumption goods sectors. Specifically, I estimate the model using Mexican and US data and find that a permanent US-originating IST shock is important in explaining Mexican business cycle dynamics. Shocks to investment sector technology explain around 60% of the investment, 44% of the consumption and 52% of the output variability. I argue that both a shock that captures financial frictions and a permanent US-originating IST shock are necessary to account for the key business cycle features in the data.

Subject

Mercat de futurs, Mercat financer, Transferència de tecnologia, Inversions estrangeres, Tecnologia

Subject (English)

Futures market, Financial market, Technology transfer, Foreign investments, Technology

Citation

Collections

Articles publicats en revistes (Economia)

Citation

DOGAN, Aydan. Investment specific technology shocks and emerging market business cycle dynamics. Review Of Economic Dynamics. 2019. Vol. 34, num. 202-220. ISSN 1094-2025. [consulted: 9 of June of 2026]. Available at: https://hdl.handle.net/2445/200121

Export metadata

JSON - METS

Share record