02150cas a2200265 a 4500 AALejournalIMF011930 230101c9999 xx r poo 0 0eng d 5.00 USD 9781475504491 1018-5941 BD-DhAAL BD-DhAAL Wu, Yiqun. Global and Regional Spillovers to Pacific Island Countries / Yiqun Wu, Patrizia Tumbarello, Niamh Sheridan. Washington, D.C. : International Monetary Fund, 2012. 1 online resource (41 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 Regional integration of Pacific Island countries (PICs) with Australia, New Zealand, and emerging Asia has increased over the last two decades. PICs have become more exposed to the region's business cycles, and spillovers from regional economies are more important for PICs than from advanced economies outside the region. While strong linkages with Asia would help in the event of a global downturn, PICs remain particularly vulnerable to global commodity price shocks. In this paper, we use a Vector Error Correction Model (VECM) for each PIC to gauge the impact of global and regional growth spillovers. The analysis reveals that the impact on PICs' growth from an adverse oil shock would be substantial, and in some cases even larger than from a negative global demand shock. We also assess the spillovers to the financial sector from the deterioration of the global outlook. PICs should continue to rebuild policy buffers and implement growth-oriented structural reforms to ensure sustained and inclusive growth. Mode of access: Internet Sheridan, Niamh. Tumbarello, Patrizia. IMF Working Papers; Working Paper ; No. 2012/154 Full text available on IMF http://elibrary.imf.org/view/journals/001/2012/154/001.2012.issue-154-en.xml IMF e-Library