Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries
AbstractDevaluation is an integral part of adjustment in many developing countries, particularly relied upon by countries facing large external imbalances. A devaluation can only reduce trade imbalances if it translates to a real devaluation and if trade flows respond to relative prices in a sig nificant and predictable manner. However, a recent strand in the empirical trade literature has questioned the existence of a stable relationship between trade flows and its traditional determinants. This paper re-examines the relationship between relative prices and imports and exports in a sample of 12 developing countries.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 6974.
Date of creation: Jun 1995
Date of revision:
Publication status: Published in IMF Staff Papers 2.42(1995): pp. 290-312
devaluation; imports; exports; trade elasticities;
Other versions of this item:
- Carmen M. Reinhart, 1995. "Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries," IMF Staff Papers, Palgrave Macmillan, vol. 42(2), pages 290-312, June.
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F1 - International Economics - - Trade
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