02028cas a2200265 a 4500 AALejournalIMF011699 230101c9999 xx r poo 0 0eng d 5.00 USD 9781463937102 1018-5941 BD-DhAAL BD-DhAAL Dabla-Norris, Era. Spillovers to Low-Income Countries : Importance of Systemic Emerging Markets / Era Dabla-Norris, Raphael Espinoza, Sarwat Jahan. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (27 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper documents the expanding economic linkages between low-income countries (LICs) and a narrow group of "Emerging Market leaders" that have become major players in regional and global trade and financial flows. VAR models show that these linkages have increased the share of growth volatility that can be attributed to foreign shocks in LICs. Dynamic panel models further analyze the impact of LIC trade orientation and production structure on the sensitivity to foreign shocks. The empirical results demonstrate that the elasticity of growth to trading partners' growth is high for LICs in Asia, Latin America and the Caribbean, and Europe and Central Asia. However, for commodity-exporting LICs in Sub-Saharan Africa and the Middle East, terms of trade shocks and demand from the emerging market leaders are the main channels of transmission of foreign shocks. Mode of access: Internet Espinoza, Raphael. Jahan, Sarwat. IMF Working Papers; Working Paper ; No. 2012/049 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/049/001.2012.issue-049-en.xml IMF e-Library