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01707cas a2200241 a 4500 |
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|c 5.00 USD
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|z 9781451860245
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|a 1018-5941
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|a BD-DhAAL
|c BD-DhAAL
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|a International Monetary Fund.
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|a Trade Costs and Real Exchange Rate Volatility :
|b The Role of Ricardian Comparative Advantage.
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|a Washington, D.C. :
|b International Monetary Fund,
|c 2005.
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|a 1 online resource (43 pages)
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|a IMF Working Papers
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|a <strong>Off-Campus Access:</strong> No User ID or Password Required
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|a <strong>On-Campus Access:</strong> No User ID or Password Required
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|a Electronic access restricted to authorized BRAC University faculty, staff and students
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|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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|a Mode of access: Internet
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|a IMF Working Papers; Working Paper ;
|v No. 2005/005
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|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
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