Trade First and Trade Fast: A Duration Analysis of Recovery from Currency Crisis
AbstractOver the last three decades, durations of recovery of output from contractionary currency crises have shown much variation both within and across countries. Using a dataset comprising of both developing and industrial countries, this paper examines the importance of economic fundamentals, international trade and liberalized capital account in determining the speed of recovery from such crises. We found that poor macroeconomic fundamentals and capital account liberalization have no significant effect on duration of recovery. However, all trade related variables were found to be significant. Our results indicate the preeminence of export led recovery.
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Bibliographic InfoPaper provided by Rutgers University, Department of Economics in its series Departmental Working Papers with number 200607.
Length: 20 pages
Date of creation: 06 Apr 2006
Date of revision:
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More information through EDIRC
Currency Crisis; Output Recovery; Duration Analysis;
Find related papers by JEL classification:
- F30 - International Economics - - International Finance - - - General
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-16 (All new papers)
- NEP-FMK-2006-09-16 (Financial Markets)
- NEP-IFN-2006-09-16 (International Finance)
- NEP-INT-2006-09-16 (International Trade)
- NEP-KNM-2006-09-16 (Knowledge Management & Knowledge Economy)
- NEP-MON-2006-09-16 (Monetary Economics)
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