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Trade and Sudden Stop Crises

Author

Listed:
  • Brent Neiman

    (University of Chicago)

  • Gita Gopinath

    (Harvard University)

Abstract

Adjustment primarily occurred through existing importers and exporters changing their product mix. This implies that the macroeconomic impact of such rapid external adjustment does not come from the two channels most focused on in the literature: it does not result from the reallocation of market share from less productive to more productive firms nor from gains or losses of variety at the consumer level. Rather, it suggests the most important impact of external adjustment comes through changes in the productivity of importing firms.

Suggested Citation

  • Brent Neiman & Gita Gopinath, 2010. "Trade and Sudden Stop Crises," 2010 Meeting Papers 220, Society for Economic Dynamics.
    • Handle: RePEc:red:sed010:220
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