Full text of Working Papers (Federal Reserve Bank of Chicago) : North-South Financial Integration and Business Cycles, Working Paper 1996-10

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Working Papers Series

North-South Financial Integration and
Business Cycles

By: Michael A. Kouparitsas

Working Papers Series
Research Department
WP 96-10

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C. Country lists
C.1 Northern and Southern regions
C.1.1 Southern countries
Low-income countries
Benin
Burkina Faso
Central African Republic
Egypt
Ethiopia
Gambia, The
Ghana
Guyana
Haiti
Honduras

India
Kenya
Lesotho
Madagascar
Malawi
Mali
Mauritania
Nepal
Niger
Pakistan

Rwanda
Sierra Leone
Somalia
Sudan
Tanzania
Togo
Uganda
Zaire
Zambia

Middle-income countries
Argentina
Barbados
Bolivia
Botswana
Brazil
Cameroon
Chile
Colombia
Costa Rica
Dominican Republic
Ecuador
El Salvador
Fiji

Greece
Guatemala
Jamaica
Jordan
Korea, Republic of
Malaysia
Malta
Mauritius
Mexico
Morocco
Nicaragua
Panama
Papua New Guinea

Paraguay
Peru
Philippines
Portugal
Senegal
South Africa
Syrian Arab Republic
Thailand
Tunisia
Turkey
Uruguay
Zimbabwe

Hong Kong
Iceland
Ireland
Israel
Italy
Japan
Netherlands
New Zealand

Norway
Singapore
Spain
Sweden
Switzerland
United Kingdom
United States

C.1.2. Northern Countries
Australia
Austria
Canada
Cyprus
Denmark
Finland
France
Germany

Table 1: Benchmark parameters
Parameter

North

South

Preferences
β
σ
θc consistent with market time N:

0.98
2.00
0.20

Production
δ
Primary sector
θ1
α1
(i/k)/(φk’/φk'')
(N/Ns)/(φΝ’/φΝ'')
Manufacturing sector
σε
θ2
ωy consistent with value-added cost share:
(i/k)/(φk’/φk'')
(N/Ns)/(φΝ’/φΝ'')
Trade
Primary
σµ1
ω1 consistent with imports/(total domestic usuage) share:
Manufacturing
σµ2
ω2 consistent with imports/(total domestic usuage) share:

Global

0.025
0.25
0.35
-0.70
-50.00

0.20
0.65
0.90
-0.10
-0.0001

1.00
0.40

0.11
0.50

0.03

0.34

Table 2: Actual and model steady state shares
North

South

Variable

Data

Model

Data

Model

Production-Domestic share
Output gross domestic product
Primary value-added
Manufacturing value-added

1.00
0.08
0.92

1.00
0.07
0.93

1.00
0.26
0.74

1.00
0.27
0.73

Production-World share
Output gross domestic product
Primary value-added
Manufacturing value-added

0.84
0.48
0.87

0.85
0.53
0.86

0.16
0.52
0.13

0.15
0.47
0.14

Labor-Sectoral share
Primary
Manufacturing

0.03
0.97

0.13
0.87

Investment-Sectoral share
Primary
Manufacturing

0.06
0.94

0.25
0.75

Expenditure-Share of GDP
Consumption
Investment
Exports
Imports

0.75
0.25
0.04
0.04

0.78
0.22
0.07
0.07

0.77
0.24
0.15
0.17

0.80
0.20
0.34
0.34

Trade-Export shares
Primary
Manufacturing

0.20
0.80

0.03
0.97

0.58
0.42

0.58
0.42

Notes: Author’s calculations based on data from World Bank (1991) and United Nations (1992), Tables 6.3 and 6.4.

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