How Does Trade Evolve in the Aftermath of Financial Crises? /

We analyze trade dynamics following past episodes of financial crises. Using an augmented gravity model and 179 crisis episodes from 1970-2009, we find that there is a sharp decline in a country's imports in the year following a crisis-19 percent, on average-and this decline is persistent, with...

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Bibliografski detalji
Glavni autor: Abiad, Abdul
Daljnji autori: Mishra, Prachi, Topalova, Petia
Format: Žurnal
Jezik:English
Izdano: Washington, D.C. : International Monetary Fund, 2011.
Serija:IMF Working Papers; Working Paper ; No. 2011/003
Online pristup:Full text available on IMF
Opis
Sažetak:We analyze trade dynamics following past episodes of financial crises. Using an augmented gravity model and 179 crisis episodes from 1970-2009, we find that there is a sharp decline in a country's imports in the year following a crisis-19 percent, on average-and this decline is persistent, with imports recovering to their gravity-predicted levels only after 10 years. In contrast, exports of the crisis country are not adversely affected, and they remain close to the predicted level in both the short and medium-term.
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Opis:1 online resource (54 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Pristup:Electronic access restricted to authorized BRAC University faculty, staff and students