Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

This study examines business cycle fluctuations in selected Sub-Saharan African (SSA) countries. The study measures the impact of selected real shocks, namely: terms of trade shocks, commodity price shocks, and government spending shocks, on macroeconomic fluctuations in SSA. The impact of the selec...

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Autores principales:	Barnabas Amu, Evans S. Osabuohien, Philip O. Alege, Jeremiah O. Ejemeyovwi
Formato:	article
Lenguaje:	EN
Publicado:	Taylor & Francis Group 2021
Materias:	bayesian panel var macroeconomic fluctuations real business cycle real shocks sub-saharan africa Business HF5001-6182 Management. Industrial management HD28-70
Acceso en línea:	https://doaj.org/article/0bff5b2236264ba8846efb65278a3d9a
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spelling	oai:doaj.org-article:0bff5b2236264ba8846efb65278a3d9a2021-12-02T11:37:48ZImpact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries2331-197510.1080/23311975.2021.1875548https://doaj.org/article/0bff5b2236264ba8846efb65278a3d9a2021-01-01T00:00:00Zhttp://dx.doi.org/10.1080/23311975.2021.1875548https://doaj.org/toc/2331-1975This study examines business cycle fluctuations in selected Sub-Saharan African (SSA) countries. The study measures the impact of selected real shocks, namely: terms of trade shocks, commodity price shocks, and government spending shocks, on macroeconomic fluctuations in SSA. The impact of the selected shocks was measured by the Bayesian Panel Vector Autoregression (BPVAR) technique. It was ascertained from the results that real (i.e. productivity) shocks drive business cycles (macroeconomic fluctuations) in SSA countries which support theoretical inclination. Furthermore, from the empirical analysis, terms of trade shocks possess the highest positive impact on business cycles. At the same time, government expenditure has the highest negative impact on business cycle among the three selected real shocks across the SSA region. Thus, the study recommends that government institutions in SSA should embark on sound fiscal policy plan along with monetary policy to stabilise the economy during recessions and expansions. The study highlights the need for diversification of the export base of SSA countries to mitigate terms of trade losses usually occasioned by unfavourable commodity price shocks.Barnabas AmuEvans S. OsabuohienPhilip O. AlegeJeremiah O. EjemeyovwiTaylor & Francis Grouparticlebayesian panel varmacroeconomic fluctuationsreal business cyclereal shockssub-saharan africaBusinessHF5001-6182Management. Industrial managementHD28-70ENCogent Business & Management, Vol 8, Iss 1 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	bayesian panel var macroeconomic fluctuations real business cycle real shocks sub-saharan africa Business HF5001-6182 Management. Industrial management HD28-70
spellingShingle	bayesian panel var macroeconomic fluctuations real business cycle real shocks sub-saharan africa Business HF5001-6182 Management. Industrial management HD28-70 Barnabas Amu Evans S. Osabuohien Philip O. Alege Jeremiah O. Ejemeyovwi Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
description	This study examines business cycle fluctuations in selected Sub-Saharan African (SSA) countries. The study measures the impact of selected real shocks, namely: terms of trade shocks, commodity price shocks, and government spending shocks, on macroeconomic fluctuations in SSA. The impact of the selected shocks was measured by the Bayesian Panel Vector Autoregression (BPVAR) technique. It was ascertained from the results that real (i.e. productivity) shocks drive business cycles (macroeconomic fluctuations) in SSA countries which support theoretical inclination. Furthermore, from the empirical analysis, terms of trade shocks possess the highest positive impact on business cycles. At the same time, government expenditure has the highest negative impact on business cycle among the three selected real shocks across the SSA region. Thus, the study recommends that government institutions in SSA should embark on sound fiscal policy plan along with monetary policy to stabilise the economy during recessions and expansions. The study highlights the need for diversification of the export base of SSA countries to mitigate terms of trade losses usually occasioned by unfavourable commodity price shocks.
format	article
author	Barnabas Amu Evans S. Osabuohien Philip O. Alege Jeremiah O. Ejemeyovwi
author_facet	Barnabas Amu Evans S. Osabuohien Philip O. Alege Jeremiah O. Ejemeyovwi
author_sort	Barnabas Amu
title	Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
title_short	Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
title_full	Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
title_fullStr	Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
title_full_unstemmed	Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries
title_sort	impact of real shocks on business cycles in selected sub-saharan african countries
publisher	Taylor & Francis Group
publishDate	2021
url	https://doaj.org/article/0bff5b2236264ba8846efb65278a3d9a
work_keys_str_mv	AT barnabasamu impactofrealshocksonbusinesscyclesinselectedsubsaharanafricancountries AT evanssosabuohien impactofrealshocksonbusinesscyclesinselectedsubsaharanafricancountries AT philipoalege impactofrealshocksonbusinesscyclesinselectedsubsaharanafricancountries AT jeremiahoejemeyovwi impactofrealshocksonbusinesscyclesinselectedsubsaharanafricancountries
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Impact of Real Shocks on Business Cycles in selected Sub-Saharan African Countries

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