Özçelik, Emre and Tuğan, Mustafa (2019): Terms-of-Trade Effects of Productivity Shocks in Developing Economies.
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Abstract
This paper studies the terms-of-trade effects from economy-specific shocks to productivity with a focus on developing economies using a panel vector autoregression model with interactive fixed effects and the “maxshare” approach. We find that the terms of trade in developing economies show insignificant dynamics after such shocks. The analysis of a more detailed classification of developing economies reveals a finding of critical importance: a positive economy-specific productivity shock results in a significant improvement in the terms of trade in the developing economies with a high degree of export diversification, indicating a clear violation of the small-country assumption for these economies.
Item Type: | MPRA Paper |
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Original Title: | Terms-of-Trade Effects of Productivity Shocks in Developing Economies |
English Title: | Terms-of-Trade Effects of Productivity Shocks in Developing Economies |
Language: | English |
Keywords: | Productivity shocks; The terms of trade; The small-country assumption. |
Subjects: | O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O57 - Comparative Studies of Countries |
Item ID: | 93356 |
Depositing User: | Mustafa Tuğan |
Date Deposited: | 18 Apr 2019 08:15 |
Last Modified: | 05 Dec 2024 01:32 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/93356 |
Available Versions of this Item
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Terms of Trade Effects of Productivity Shocks and Economic Development. (deposited 18 Jan 2019 14:17)
- Terms-of-Trade Effects of Productivity Shocks in Developing Economies. (deposited 18 Apr 2019 08:15) [Currently Displayed]