Growth Spillover Dynamics From Crisis to Recovery

WPIEA2011218 Image
Price:  $18.00

Author/Editor: Helene Poirson Ward, Sebastian Weber
Release Date: © September, 2011
ISBN : 978-1-46390-351-0
Stock #: WPIEA2011218
Stock Status: On back-order

Languages and formats available



Can positive growth shocks from the faster-growing countries in Europe spill over to the slower growing countries, providing useful tailwinds to their recovery process? This study investigates the potential relevance of growth spillovers in the context of the crisis and the recovery process. Based on a VAR framework, our analysis suggests that the U.S. and Japan remain the key source of growth spillovers in this recovery, with France also playing an important role for the European crisis countries. Notwithstanding the current export-led cyclical upswing, Germany generates relatively small outward spillovers compared to other systemic countries, but likely plays a key role in transmitting and amplifying external growth shocks to the rest of Europe given its more direct exposure to foreign shocks compared to other European countries. Positive spillovers from Spain were important prior to the 2008 - 09 crisis, however Spain is generating negative spillovers in this recovery due to a depressed domestic demand. Negative spillovers from the European crisis countries appear limited, consistent with their modest size.


Economic cooperation , Euro area , Financial crisis , International financial system , Monetary unions

More publications in this series: Working Papers

More publications by: Helene Poirson Ward ; Sebastian Weber