International Evidenceon the Determinants of Trade Dynamics
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Summary:
This paper provides some new empirical perspectives on the relationship between international trade and macroeconomic fluctuations in industrial economies. First, a comprehensive set of stylized facts concerning fluctuations in trade variables and their determinants are presented. A measure of the quantitative importance of international trade for the propagation of domestic business cycles is then constructed, focusing on the role of external trade as a catalyst for cyclical recoveries. Finally, structural vector autoregression models are used to characterize the joint dynamics of output, exchange rates, and trade variables in response to different types of macroeconomic shocks.
Series:
Working Paper No. 1997/172
Subject:
Business cycles Economic growth Exchange rates Exports Foreign exchange International trade Real exchange rates Trade balance
Notes:
Also published in Staff Papers, Vol. 45, No. 3, September 1998.
English
Publication Date:
December 1, 1997
ISBN/ISSN:
9781451858549/1018-5941
Stock No:
WPIEA1721997
Pages:
43
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