Spillover effects of commodity price shocks impact global economies significantly.
The article explores how changes in commodity prices in one country can affect prices in other countries. By using a multi-country panel VAR model, the researchers found that these price shocks not only impact the country where they originate but also spill over to other exporting countries. This spillover effect plays a significant role in how commodity prices fluctuate globally. Understanding and managing these spillover effects is crucial for both exporting and importing countries to navigate commodity price dynamics effectively.