Trade Openness and Volatility /

This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is accompanied...

Ausführliche Beschreibung

Bibliographische Detailangaben
1. Verfasser: Levchenko, Andrei
Weitere Verfasser: Di Giovanni, Julian
Format: Zeitschrift
Sprache:English
Veröffentlicht: Washington, D.C. : International Monetary Fund, 2008.
Schriftenreihe:IMF Working Papers; Working Paper ; No. 2008/146
Online Zugang:Full text available on IMF
Beschreibung
Zusammenfassung:This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is accompanied by increased specialization. Third, sectors that are more open are less correlated with the rest of the economy. The point estimates indicate that each of the three effects has an appreciable impact on aggregate volatility. Added together they imply that the relationship between trade openness and overall volatility is positive and economically significant.
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Beschreibung:1 online resource (60 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Zugangseinschränkungen:Electronic access restricted to authorized BRAC University faculty, staff and students