What Happened to Asian Exports During the Crisis?

Author/Editor:

Antonio Spilimbergo ; Rupa Duttagupta

Publication Date:

December 1, 2000

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

After the large exchange rate depreciations following the 1997 East Asian crisis, export volumes from East Asian countries responded with a notable lag. Two main explanations for this lag have been proposed: that the policy of high interest rates limited access to domestic credit and hence limited the supply of exports; and that “competitive depreciation” neutralized the effects on demand for exports. This paper considers the plausibility of these two mechanisms using a new monthly database on exports of selected industries. We find evidence that “competitive depreciation” did play a fundamental role in the propagation of the East Asian crisis through the trade channel, even at a monthly frequency.

Series:

Working Paper No. 00/200

Subject:

English

Publication Date:

December 1, 2000

ISBN/ISSN:

9781451860153/1018-5941

Stock No:

WPIEA2002000

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

31

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