By quantifying the determining factors of Czech trade during 1993-2002, this paper enriches the empirical trade literature with evidence from an economy that has undergone intensive structural changes. Our findings lend significance to standard macroeconomic variables such as aggregate demand and the real exchange rate. Apart from these, however, liberalisation of tariffs, the evolution of unit prices of exports and imports, and economies of scale also played a significant role. An out-of-sample forecast for the trade balance was carried out for 2003-2004.
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Paper provided by Czech National Bank, Research Department in its series Working Papers with number
2005/03.
Find related papers by JEL classification: C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data F14 - International Economics - - Trade - - - Country and Industry Studies of Trade F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
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