International Evidenceon the Determinants of Trade Dynamics

Author/Editor:

Eswar S Prasad ; Jeffery A. Gable

Publication Date:

December 1, 1997

Electronic Access:

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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. 97/172

Subject:

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

Format:

Paper

Pages:

43

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