Publication:
When Do Sudden Stops Really Hurt?

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dc.contributor.authorCaner, Mehmet
dc.contributor.authorKoehler-Geib, Fritzi
dc.contributor.authorVincelette, Gallina Andronova
dc.date.accessioned2012-03-19T19:11:57Z
dc.date.available2012-03-19T19:11:57Z
dc.date.issued2009-08-01
dc.description.abstractThis paper analyzes the drivers and consequences of sudden stops of capital flows. It focuses on the impact of external vulnerability on the depth and length of sudden stop crises. The authors analyze 43 developing and developed countries between 1993 and 2006. They find evidence that external vulnerability not only significantly impacts the probability of a sudden stop crisis, but also prolongs the time it takes for growth to revert to its long-term trend once a sudden stop occurs. Interestingly, external vulnerability does not significantly impact the size of the instantaneous output effect in case of a sudden stop but prompts a cumulative output effect through significantly diminishing the speed of adjustment of output to its trend. This finding implies that countries financing a large part of their absorption externally do not suffer more ferocious output losses in a sudden stop crisis, but take longer to adapt afterward and are hence expected to suffer more protracted crises periods. Compared with previous literature, this paper makes three contributions: (i) it extends the country and time coverage relative to datasets that have previously been used to analyze related topics; (ii) it specifically accounts for time-series autocorrelation; and (iii) it provides an analysis of the adjustment path of economic growth after a sudden stop.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820133012
dc.identifier.doi10.1596/1813-9450-5021
dc.identifier.urihttps://hdl.handle.net/10986/4214
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5021
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADJUSTMENT DYNAMICS
dc.subjectADJUSTMENT PATH
dc.subjectANNUAL GROWTH
dc.subjectANNUAL GROWTH RATE
dc.subjectASSET POSITIONS
dc.subjectBANKING SECTOR
dc.subjectBASIS POINTS
dc.subjectBOND
dc.subjectBOND INDEX
dc.subjectCAPITAL FLOW
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCOMMODITY
dc.subjectCOMMODITY EXPORTS
dc.subjectCOMMODITY PRICES
dc.subjectCONSUMPTION EXPENDITURE
dc.subjectCOUNTRY SPECIFIC
dc.subjectCREDIT GROWTH
dc.subjectCREDIT RATINGS
dc.subjectCURRENCY
dc.subjectCURRENCY COMPOSITION
dc.subjectCURRENCY CRISES
dc.subjectCURRENCY DATA
dc.subjectCURRENCY MISMATCHES
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectDATA SETS
dc.subjectDEBT
dc.subjectDEMAND DEPOSITS
dc.subjectDEPENDENT VARIABLE
dc.subjectDEPOSITS
dc.subjectDEPRECIATION
dc.subjectDESCRIPTIVE STATISTICS
dc.subjectDEVELOPED COUNTRIES
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT ECONOMICS
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC MARKET
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectECONOMETRIC ANALYSIS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMICS
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET COUNTRIES
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectEMPIRICAL RESULTS
dc.subjectEQUATIONS
dc.subjectEQUILIBRIUM
dc.subjectERROR TERM
dc.subjectERROR TERMS
dc.subjectESTIMATION RESULTS
dc.subjectEXCHANGE RATE FLUCTUATIONS
dc.subjectEXPORTERS
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL IMBALANCES
dc.subjectFEDERAL RESERVE
dc.subjectFEDERAL RESERVE BANK
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL FLOWS
dc.subjectFINANCIAL FRAGILITY
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL OPENNESS
dc.subjectFINANCIAL RISKS
dc.subjectFINANCIAL STUDIES
dc.subjectFISCAL BALANCES
dc.subjectFIXED CAPITAL
dc.subjectFIXED EFFECTS
dc.subjectFIXED EFFECTS ESTIMATION
dc.subjectFIXED RATES
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY ASSETS
dc.subjectFOREIGN CURRENCY LENDING
dc.subjectFOREIGN DIRECT INVESTMENT
dc.subjectFOREIGN FINANCING
dc.subjectFOREIGN LIABILITIES
dc.subjectFOREIGN RESERVES
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGROSS DOMESTIC PRODUCT
dc.subjectGROSS FIXED CAPITAL FORMATION
dc.subjectGROWTH EQUATION
dc.subjectGROWTH IMPACT
dc.subjectGROWTH PERFORMANCE
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectIMBALANCES
dc.subjectIMPORTS
dc.subjectINCOME GROWTH
dc.subjectINCOME LEVELS
dc.subjectINDEBTEDNESS
dc.subjectINDEPENDENT MONETARY POLICY
dc.subjectINDUSTRIALIZED COUNTRIES
dc.subjectINFLOWS OF CAPITAL
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINVESTMENT RATIO
dc.subjectLIABILITY
dc.subjectLONG RUN
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMATURITIES
dc.subjectMATURITY
dc.subjectMATURITY MISMATCHES
dc.subjectMAXIMUM LIKELIHOOD ESTIMATION
dc.subjectNEGATIVE EFFECT
dc.subjectNEGATIVE IMPACT
dc.subjectNORMAL DISTRIBUTION
dc.subject0 HYPOTHESIS
dc.subjectOUTPUT
dc.subjectOUTPUT GROWTH
dc.subjectOUTPUT LOSS
dc.subjectOUTPUT LOSSES
dc.subjectOUTPUT PER CAPITA
dc.subjectPER CAPITA GROWTH
dc.subjectPER CAPITA INCOME
dc.subjectPER CAPITA INCOME LEVELS
dc.subjectPOLICY RESEARCH
dc.subjectPOPULATION GROWTH
dc.subjectPOVERTY REDUCTION
dc.subjectRAPID GROWTH
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL GDP
dc.subjectREGIONAL DUMMIES
dc.subjectRELATIVE PRICES
dc.subjectRESERVE MONEY
dc.subjectRETURN
dc.subjectRISK AVERSION
dc.subjectROBUSTNESS CHECK
dc.subjectROBUSTNESS CHECKS
dc.subjectSPEED OF ADJUSTMENT
dc.subjectSTANDARD DEVIATIONS
dc.subjectTIME HORIZON
dc.subjectTRADABLE GOODS
dc.subjectTRADE BALANCE
dc.subjectTRADE BALANCES
dc.subjectTRADE SHOCK
dc.subjectTRADE SHOCKS
dc.subjectTRANSITION ECONOMIES
dc.subjectVALUE ADDED
dc.subjectVOLATILITY
dc.titleWhen Do Sudden Stops Really Hurt?en
dspace.entity.typePublication
okr.crossref.titleWhen Do Sudden Stops Really Hurt?
okr.date.doiregistration2025-04-10T12:07:22.696093Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090820133012
okr.globalpracticePoverty
okr.guid203491468336023279
okr.identifier.doi10.1596/1813-9450-5021
okr.identifier.externaldocumentum000158349_20090820133012
okr.identifier.internaldocumentum10973257
okr.identifier.reportWPS5021
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2009/08/20/000158349_20090820133012/Rendered/PDF/WPS5021.pdfen
okr.region.administrativeThe World Region
okr.region.administrativeThe World Region
okr.topicPoverty Reduction::Achieving Shared Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublication0fc843bd-9f7f-57ac-b8dc-280515f46cd5
relation.isAuthorOfPublication.latestForDiscovery0fc843bd-9f7f-57ac-b8dc-280515f46cd5
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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