## How Does Trade Evolve in the Aftermath of Financial Crises?

_IMF Working Papers, January 1, 2011_

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**Canonical URL:** [How Does Trade Evolve in the Aftermath of Financial Crises?](https://www.imf.org/en/publications/wp/issues/2016/12/31/how-does-trade-evolve-in-the-aftermath-of-financial-crises-24553)

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## Bibliographic details
- Authors: Abdul d Abiad, Petia Topalova, Prachi Mishra
- Published: January 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455211814.001

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### Key findings
- There is a sharp decline in a country’s imports in the year following a crisis—19 percent, on average.
- The decline in imports is persistent: imports recover to their gravity-predicted levels only after 10 years.
- Exports of the crisis country are not adversely affected and remain close to the predicted level in both the short and medium-term.

### Data and methodology
- Sample: 179 crisis episodes from 1970-2009.
- Empirical approach: augmented gravity model.

### Subject areas and keywords
- Subject: Banking crises, Econometric analysis, Exports, Financial crises, Gravity models, Imports, International trade
- Keywords: Banking crises, crisis dummy, crisis t, exchange rate, exporter crisis indicator, Exports, financial crises, Global, Gravity models, importer-exporter dummy, importer-exporter-year observation, Imports, pair dummy, trade, trade dynamics, WP

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## Content in this bundle

- **_wp1103 - Appendix 1. Data Sources**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/how-does-trade-evolve-in-the-aftermath-of-financial-crises-24553_