Reinhart, Carmen (1994): Devaluation, Relative Prices, and International Trade. Published in: IMF Staff Papers , Vol. 42, No. 2 (June 1995): pp. 290-312.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Devaluation, Relative Prices, and International Trade|
|Keywords:||exports imports devaluation world growth competitiveness|
|Subjects:||F - International Economics > F1 - Trade
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
|Depositing User:||Carmen Reinhart|
|Date Deposited:||02. Mar 2009 05:57|
|Last Modified:||12. Feb 2013 19:20|
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