Inflation and Trade Openness Revised: an Analysis Using Panel Data
AbstractIn this article we estimate the relationship between inflation and trade openness [e.g.,Romer (1993)] using modern panel data techniques. The advantage here is that weare able to explicit test the hypothesis proposed by Terra (1998) that the negativerelationship between openness and inflation is due to severely indebted countries inthe debt crisis period. The econometric results give support to Romer (1993)showing that the negative relationship between inflation and openness are neitherrestrict to a subset of countries or a time period.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Instituto de Pesquisa Econômica Aplicada - IPEA in its series Discussion Papers with number 1148.
Length: 22 pages
Date of creation: Jan 2006
Date of revision:
Contact details of provider:
Postal: SBS - Quadra 01 - Bloco J - Ed. BNDES, Brasília, DF - 70076-90
Web page: http://www.ipea.gov.br
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-91, June.
- David Romer, 1991.
"Openness and inflation: theory and evidence,"
Federal Reserve Bank of San Francisco, issue Nov.
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics
9526, Faculty of Economics, University of Cambridge.
- M. F. Bleaney, 1999. "The Disappearing Openness-Inflation Relationship - A Cross-Country Analysis of Inflation Rates," IMF Working Papers 99/161, International Monetary Fund.
- Cristina T. Terra, 1998.
"Openness And Inflation: A New Assessment,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(2), pages 641-648, May.
- Barro, Robert J & Gordon, David B, 1983.
"A Positive Theory of Monetary Policy in a Natural Rate Model,"
Journal of Political Economy,
University of Chicago Press, vol. 91(4), pages 589-610, August.
- Robert J. Barro & David B. Gordon, 1983. "A Positive Theory of Monetary Policy in a Natural-Rate Model," NBER Working Papers 0807, National Bureau of Economic Research, Inc.
- Christopher Bowdler, 2003.
"Openness and the Output-Inflation Tradeoff,"
2003-W04, Economics Group, Nuffield College, University of Oxford.
- Christopher Bowdler, 2004. "Openness and the output-inflation tradeoff," Money Macro and Finance (MMF) Research Group Conference 2003 7, Money Macro and Finance Research Group.
- Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
- Temple, Jonathan, 2002. "Openness, Inflation, and the Phillips Curve: A Puzzle," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(2), pages 450-68, May.
- Rogoff, Kenneth, 1985. "Can international monetary policy cooperation be counterproductive?," Journal of International Economics, Elsevier, vol. 18(3-4), pages 199-217, May.
- Hardouvelis, Gikas A., 1992.
"Monetary policy games, inflationary bias, and openness,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 16(1), pages 147-164, January.
- Hardouvelis, G.A., 1988. "Monetary Policy Games, Inflationary Bias And Openness," Papers fb-_88-17, Columbia - Graduate School of Business.
- Cavallari, Lilia, 2001. "Inflation and Openness with Non-Atomistic Wage Setters," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 210-25, May.
- Bilginsoy, Cihan, 1993. "Inflation, growth, and import bottlenecks in the Turkish manufacturing industry," Journal of Development Economics, Elsevier, vol. 42(1), pages 111-131, October.
- Lane, Philip R., 1997. "Inflation in open economies," Journal of International Economics, Elsevier, vol. 42(3-4), pages 327-347, May.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Fabio Schiavinatto).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.