Trade Elasticities in the Middle East and Central Asia: What is the Role of Oil?
AbstractThe analysis in this paper suggests that import and export volume elasticities are markedly lower in oil-exporting Middle East and Central Asian countries than in non-oil countries in the region. A key implication of this finding is that a real appreciation of the exchange rate in oil-exporting countries would achieve little in terms of expenditure switching: an appreciation does not boost imports and non-oil exports constitute only a small share of GDP and total trade in these countries. Therefore, while a real appreciation lowers the current account surplus of oil-exporting countries through valuation effects, the contribution to lowering global imbalances may be more limited.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 08/216.
Date of creation: 01 Sep 2008
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This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-10-28 (All new papers)
- NEP-CBA-2008-10-28 (Central Banking)
- NEP-DEV-2008-10-28 (Development)
- NEP-ENE-2008-10-28 (Energy Economics)
- NEP-IFN-2008-10-28 (International Finance)
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