Devaluation, Relative Prices, and International Trade : Evidence From Developing Countries
Summary:
Devaluation is an integral part of adjustment in many developing countries, particularly relied upon by countries facing large external imbalances. A devaluation can only reduce trade imbalances if it translates to a real devaluation and if trade flows respond to relative prices in a significant and predictable manner. However, a recent strand in the empirical trade literature has questioned the existence of a stable relationship between trade flows and its traditional determinants. This paper re-examines the relationship between relative prices and imports and exports in a sample of 12 developing countries.
Series:
Working Paper No. 94/140
Subject:
Exports Imports International trade
Notes:
Examines on the relationship between relative prices and imports and exports in a sample of 12 developing countries. Also published in Staff Papers, Vol. 42, No. 2, June 1995.
English
Publication Date:
November 1, 1994
ISBN/ISSN:
9781451928679/1018-5941
Stock No:
WPIEA1401994
Format:
Paper
Pages:
30
Please address any questions about this title to publications@imf.org