IMF Working Papers

What Happened to Asian Exports During the Crisis?

By Antonio Spilimbergo, Rupa Duttagupta

December 1, 2000

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Antonio Spilimbergo, and Rupa Duttagupta. What Happened to Asian Exports During the Crisis?, (USA: International Monetary Fund, 2000) accessed September 24, 2024
Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

After the large exchange rate depreciations following the 1997 East Asian crisis, export volumes from East Asian countries responded with a notable lag. Two main explanations for this lag have been proposed: that the policy of high interest rates limited access to domestic credit and hence limited the supply of exports; and that “competitive depreciation” neutralized the effects on demand for exports. This paper considers the plausibility of these two mechanisms using a new monthly database on exports of selected industries. We find evidence that “competitive depreciation” did play a fundamental role in the propagation of the East Asian crisis through the trade channel, even at a monthly frequency.

Subject: Depreciation, Domestic credit, Export earnings, Export prices, Exports, International trade, Money, National accounts, Prices

Keywords: Cointegration, Competitive Depreciation, Credit crunch, Demand and supply, Demand and supply supply curve, Depreciation, Domestic credit, East Asia, Equilibrium point, Export decline, Export Demand and Supply, Export demand and supply equation, Export earnings, Export equation, Export prices, Export quantity, Export supply, Export variable, Export volume, Exports, Growth rate, Supply price, WP

Publication Details

  • Pages:

    31

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2000/200

  • Stock No:

    WPIEA2002000

  • ISBN:

    9781451860153

  • ISSN:

    1018-5941

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