Emerging markets linked to global economy, vulnerable to foreign shocks.
The article presents a model that helps understand how economic changes in advanced countries affect emerging markets like South Africa. By analyzing data and using a specific type of model, the researchers found that South Africa's economy is closely linked to advanced economies, and foreign shocks can have a big impact. The model also explains how events like the global financial crisis and commodity price drops affected South Africa. This shows that the model can accurately predict and explain how different factors influence South Africa's economy.