## The Composition and Cyclical Behavior of Trade Flows in Emerging Economies

_IMF Working Papers, February 1, 2010_

## Source details

**Canonical URL:** [The Composition and Cyclical Behavior of Trade Flows in Emerging Economies](https://www.imf.org/en/publications/wp/issues/2016/12/31/the-composition-and-cyclical-behavior-of-trade-flows-in-emerging-economies-23635)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/the-composition-and-cyclical-behavior-of-trade-flows-in-emerging-economies-23635/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/the-composition-and-cyclical-behavior-of-trade-flows-in-emerging-economies-23635/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/the-composition-and-cyclical-behavior-of-trade-flows-in-emerging-economies-23635/bundle-manifest.json)

## Bibliographic details
- Authors: Reinout De Bock
- Published: February 1, 2010
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451963106.001

---

### Summary findings
- Trade flows data show that the composition and cyclical properties of imports are similar in developed economies and emerging markets (EM).
- Exports differ: unlike developed economies,
  - EM export few or only a selective set of capital goods.
  - Capital good and overall exports in EM tend to be acyclical.
- The lack of procyclicality in exports drives the strong countercyclicality of EM trade balances observed in previous studies.
- A quantitative exercise demonstrates how the standard small open economy business cycle model can be improved for EM by incorporating these features.

### Quantitative exercise and model implications
- The standard small open economy business cycle model can be improved for emerging markets by:
  - Incorporating the selective export of capital goods.
  - Allowing capital good and overall exports to be acyclical rather than procyclical.
- These model modifications help account for the observed strong countercyclicality of EM trade balances.

### Key statistics and publication metadata
- Author: Reinout De Bock
- Date: February 1, 2010
- Pages: 32
- Volume: 2010
- Issue: 046
- Series: Working Paper No. 2010/046
- DOI: https://doi.org/10.5089/9781451963106.001
- Stock No: WPIEA2010046
- ISBN: 9781451963106
- ISSN: 1018-5941
- Subject tags: Consumption, Exports, Imports, Labor, Trade balance
- Keywords: WP

*Source: "The Composition and Cyclical Behavior of Trade Flows in Emerging Economies", Reinout De Bock, IMF Working Papers, February 1, 2010.*

---

## Content in this bundle

- **_wp1046**
  - [_wp1046 (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2010/_wp1046.pdf.md){rel="alternate" type="text/markdown"}
  - [_wp1046 (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2010/_wp1046.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/the-composition-and-cyclical-behavior-of-trade-flows-in-emerging-economies-23635_