Trade Costs and Real Exchange Rate Volatility : The Role of Ricardian Comparative Advantage.

This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological diff...

Πλήρης περιγραφή

Λεπτομέρειες βιβλιογραφικής εγγραφής
Συγγραφή απο Οργανισμό/Αρχή: International Monetary Fund
Μορφή: Επιστημονικό περιοδικό
Γλώσσα:English
Έκδοση: Washington, D.C. : International Monetary Fund, 2005.
Σειρά:IMF Working Papers; Working Paper ; No. 2005/005
Διαθέσιμο Online:Full text available on IMF
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245 1 0 |a Trade Costs and Real Exchange Rate Volatility :   |b The Role of Ricardian Comparative Advantage. 
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490 1 |a IMF Working Papers 
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500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological differences and trade costs. These differences highlight a new channel, in which the similarity of a pair of countries' set of suppliers of traded goods affects bilateral exchange rate volatility. We then test the importance of this channel using a large panel of cross-country data over 1970-97, and find strong evidence supporting the channel. 
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830 0 |a IMF Working Papers; Working Paper ;  |v No. 2005/005 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2005/005/001.2005.issue-005-en.xml  |z IMF e-Library