Hysteresis in Exports /

This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric model of export determination is developed where the presence of sunk costs causes discontinuous behavior and hysteresis so that individual exporters' decision to stay in or out o...

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Bibliografski detalji
Glavni autor: Giovannetti, Giorgia
Daljnji autori: Samiei, Hossein
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 1995.
Serija:IMF Working Papers; Working Paper ; No. 1995/052
Online pristup:Full text available on IMF
Opis
Sažetak:This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric model of export determination is developed where the presence of sunk costs causes discontinuous behavior and hysteresis so that individual exporters' decision to stay in or out of the market depends on the current value of the exchange rate as well as its past history. The aggregate level of exports is then determined by the proportion of exporters that stay in the market. The resulting non-linear model is estimated using data on manufacturing exports for the United States, Germany, and Japan. The paper finds strong evidence in favor of the presence of pricing-to-market and hysteresis only in the case of Japanese exports.
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Opis:1 online resource (20 pages)
Format:Mode of access: Internet
ISSN:1018-5941
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