Terms of Trade Shocks and Economic Recovery
AbstractThis paper identifies factors that contribute to a fast recovery in growth after persistent negative terms of trade shocks, using a sample of 159 countries for 1970-2006. The results suggest that policies matter. Fast recoveries are fairly robustly related to real exchange rate depreciation and improvements in government stability and the institutional environment. A timely increase in aid may also support recovery.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 08/36.
Date of creation: 01 Feb 2008
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