Improving the Short-term Forecast of World Trade During the Covid-19 Pandemic Using Swift Data on Letters of Credit /

An essential element of the work of the Fund is to monitor and forecast international trade. This paper uses SWIFT messages on letters of credit, together with crude oil prices and new export orders of manufacturing Purchasing Managers' Index (PMI), to improve the short-term forecast of interna...

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Bibliographic Details
Main Author: Carton, Benjamin
Other Authors: Hu, Nan, Mongardini, Joannes, Moriya, Kei
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2020.
Series:IMF Working Papers; Working Paper ; No. 2020/247
Online Access:Full text available on IMF
Description
Summary:An essential element of the work of the Fund is to monitor and forecast international trade. This paper uses SWIFT messages on letters of credit, together with crude oil prices and new export orders of manufacturing Purchasing Managers' Index (PMI), to improve the short-term forecast of international trade. A horse race between linear regressions and machine-learning algorithms for the world and 40 large economies shows that forecasts based on linear regressions often outperform those based on machine-learning algorithms, confirming the linear relationship between trade and its financing through letters of credit.
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Physical Description:1 online resource (71 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students