Sharing a ride on the commodities roller coaster : common factors in business cycles of emerging economies

Borradores de Economia
Number: 
915
Published: 
Classification JEL: 
E32, F41, F44

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Mario Andrés Ramos-Veloza, Sara Naranjo-Saldarriaga, José Pulido
Rocío Clara Alexandra Mora-Quiñones, Antonio José Orozco-Gallo, Dora Alicia Mora-Pérez

Fluctuations in commodity prices are an important driver of business cycles in small emerging market economies (EMEs). We document how these fluctuations correlate strongly with the business cycle in EMEs. We then embed a commodity sector into a multi-co