American Economic Review Vol. 101 No. 3 2011

Global Financial Crisis and Africa: Is the Impact Permanent or Transitory? Time Series Evidence from North Africa

Hassan Aly¹; Mark C. Strazicich²

¹ Department of Economics, The Ohio State University, 1945 N. High Street, Columbus, Ohio 43210, African Development Bank. · ² Department of Economics, Appalachian State University, Boone, NC 28608.

Abstract

We utilize time series tests with structural breaks to test for an adverse impact on economic growth rates in North Africa associated with the recent US financial crisis and global recession. One or two breaks are identified for each country, except for Morocco where no break is found, while breaks coincide with the 2008 financial crisis in only two of the six countries (Libya and Mauritania). These findings suggest that, in general, shocks from the recent financial crisis have only temporary effects on economic growth in these countries. Impulse response functions with breaks confirm these results. We conclude by suggesting explanations for these findings.

DOI

10.1257/aer.101.3.577

Volume

101

Issue

3

Pages

577-581

Language

en

Sources

bibtex:phds-export.bib crossref openalex

Cite

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