Abstract
This article aims at assessing the role of the United States in the global economy and its evolution over time. Based on a Global VAR modeling approach, this article shows first that countries with a large trade exposure with the U.S. economy have a relatively larger sensitivity to U.S. developments. However, even for countries that do not trade so much with the U.S., they are largely influenced by its dominance through other partners’ trade. Moreover, while no clear trend seems to emerge, it seems that the role of the U.S. in the global economy has changed over time. Overall, for most countries—the latest recession excluded—a change in U.S. GDP had weaker impacts—though more persistent—for most recent periods. The latest recession, however, led to some renewed increase in the sensitivity of the economies to U.S. developments.
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Dees, S., Saint-Guilhem, A. The role of the United States in the global economy and its evolution over time. Empir Econ 41, 573–591 (2011). https://doi.org/10.1007/s00181-010-0407-2
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DOI: https://doi.org/10.1007/s00181-010-0407-2