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Network Effects of International Shocks and Spillovers

  • Alexei Kireyev
  • Andrei Leonidov
Article
  • 99 Downloads

Abstract

This paper proposes a method for assessing international spillovers from nominal demand shocks. It quantifies the impact of a shock in the crisis country on all other countries. The paper concludes that the network effects in shock spillovers can be substantial, comparable, and often exceed the initial shock. Individual countries may amplify, absorb, or block spillovers. Most developed countries pass-through shocks, whereas low-income countries and oil exporters tend to block shock spillovers. The method is used to study demand shocks originating from a large and medium country, China and Ukraine respectively.

Keywords

Shocks Economic networks Spillover Trade network 

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Copyright information

© Springer Science+Business Media, LLC, part of Springer Nature 2018
corrected publication June/2018

Authors and Affiliations

  1. 1.International Monetary FundWashingtonUSA
  2. 2.Lebedev Physics InstituteMoscowRussia

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