Reinhart, Carmen (1995): Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries. Published in: IMF Staff Papers , Vol. 42, No. 2 (June 1995): pp. 290-312.
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Abstract
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 sig nificant 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: Evidence from Developing Countries |
| Language: | English |
| Keywords: | devaluation, imports, exports, trade elasticities |
| Subjects: | F - International Economics > F3 - International Finance > F32 - Current Account Adjustment ; Short-Term Capital Movements F - International Economics > F1 - Trade |
| Item ID: | 6974 |
| Depositing User: | Carmen Reinhart |
| Date Deposited: | 03 Feb 2008 17:19 |
| Last Modified: | 27 Sep 2019 17:08 |
| URI: | https://mpra.ub.uni-muenchen.de/id/eprint/6974 |
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