IDEAS home Printed from https://ideas.repec.org/p/ags/queddp/275164.html
   My bibliography  Save this paper

Intermediate Inputs and International Trade: An Analysis of the Real and Monetary Aspects of an Oil Price Shock

Author

Listed:
  • Djajic, Slobodan

Abstract

This paper analyses the real and monetary effects of an increase in the price of a traded intermediate input. On the production side, the model differs from other work on the subject in that our economy produces the intermediate input and also traded and non-traded final goods. On the asset side, titles representing ownership of the specific factor which is used in the production of the intermediate input, are explicitly introduced into portfolios. The analysis mainly focuses on the effects of an increase in the price of the intermediate input on the distribution of income, relative prices, production levels, the balance of trade and the level of, as well as the rates of change in, nominal prices and the exchange rate.

Suggested Citation

  • Djajic, Slobodan, 1980. "Intermediate Inputs and International Trade: An Analysis of the Real and Monetary Aspects of an Oil Price Shock," Queen's Institute for Economic Research Discussion Papers 275164, Queen's University - Department of Economics.
    • Handle: RePEc:ags:queddp:275164
    DOI: 10.22004/ag.econ.275164
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/275164/files/QUEENS-IER-PAPER-394.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.275164?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Kouri, Pentti J K, 1976. " The Exchange Rate and the Balance of Payments in the Short Run and in the Long Run: A Monetary Approach," Scandinavian Journal of Economics, Wiley Blackwell, vol. 78(2), pages 280-304.
    2. Ronald E. Findlay & Carlos Alfredo Rodriguez, 1977. "Intermediate Imports and Macroeconomic Policy under Flexible Exchange Rates," Canadian Journal of Economics, Canadian Economics Association, vol. 10(2), pages 208-217, May.
    3. Calvo, Guillermo A & Rodriguez, Carlos Alfredo, 1977. "A Model of Exchange Rate Determination under Currency Substitution and Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 617-625, June.
    4. William M. Scarth, 1979. "Real Disturbances, Perfect Capital Mobility, and Exchange Rate Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 12(1), pages 93-100, February.
    5. Schmid, Michael, 1976. "A model of trade in money, goods and factors," Journal of International Economics, Elsevier, vol. 6(4), pages 347-361, November.
    6. Buiter, Willem H, 1978. "Short-run and Long-run Effects of External Disturbances under a Floating Exchange Rate," Economica, London School of Economics and Political Science, vol. 45(179), pages 251-272, August.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Louka Katseli & Nancy Marion, 1982. "Adjustment to variations in prices of imported inputs : The role of economic structure," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 118(1), pages 131-147, March.
    2. Bodenstein, Martin & Erceg, Christopher J. & Guerrieri, Luca, 2011. "Oil shocks and external adjustment," Journal of International Economics, Elsevier, vol. 83(2), pages 168-184, March.
    3. Louka T. Katseli & Nancy Peregrim Marion, 1980. "Adjustment to Variations in Imported Input Prices: The Role of Economic Structure," NBER Working Papers 0501, National Bureau of Economic Research, Inc.
    4. Buiter, William H & Purvis, Douglas D, 1980. "Oil, Disinflation, and Export Competitiveness : A Model of the "Dutch Disease"," The Warwick Economics Research Paper Series (TWERPS) 185, University of Warwick, Department of Economics.
    5. Clausen, Volker & Wohltmann, Hans-Werner, 2011. "Oil Price Shocks and Cyclical Dynamics in an Asymmetric Monetary Union," Ruhr Economic Papers 247, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    6. Ernst-August Behnke, 1980. "Stationäres und intertemporäres Gleichgewicht auf den Devisenmärkten bei festen und flexiblen Wechselkursen," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 116(II), pages 171-194, June.
    7. Paul R. Krugman, 1980. "Oil and the Dollar," NBER Working Papers 0554, National Bureau of Economic Research, Inc.
    8. Nyahoho, Emmanuel, 1995. "La concurrence de monnaies dans un marché financier dématérialisé," L'Actualité Economique, Société Canadienne de Science Economique, vol. 71(3), pages 334-364, septembre.
    9. Malley, Jim & Moutos, Thomas, 2006. "Do excessive wage increases raise imports?: Theory and evidence," Japan and the World Economy, Elsevier, vol. 18(2), pages 194-220, March.
    10. Douglas D. Purvis, 1976. "Wages, the Terms of Trade, and the Exchange Rate Regime," Cowles Foundation Discussion Papers 438, Cowles Foundation for Research in Economics, Yale University.
    11. repec:zbw:rwirep:0247 is not listed on IDEAS
    12. Maggiori, Matteo, 2021. "International Macroeconomics With Imperfect Financial Markets," SocArXiv z8g6r, Center for Open Science.
    13. Jim Malley & Thomas Moutos, 1998. "Real Wages and the Structure of Imports: Theory and Evidence," Working Papers 9821, Business School - Economics, University of Glasgow.
    14. Miss Nkunde Mwase & Mr. Francis Y Kumah, 2015. "Revisiting the Concept of Dollarization: The Global Financial Crisis and Dollarization in Low-Income Countries," IMF Working Papers 2015/012, International Monetary Fund.
    15. Betty Daniel, 1981. "Real output effects of announced monetary policy in a small open economy," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 117(3), pages 428-442, September.
    16. Obstfeld, Maurice & Stockman, Alan C., 1985. "Exchange-rate dynamics," Handbook of International Economics, in: R. W. Jones & P. B. Kenen (ed.), Handbook of International Economics, edition 1, volume 2, chapter 18, pages 917-977, Elsevier.
    17. Kondo, Koji, 1997. "Statistical analysis of foreign exchange rates: application of cointegration model and regime-switching stochastic volatility model," ISU General Staff Papers 1997010108000012997, Iowa State University, Department of Economics.
    18. Obstfeld, Maurice, 1981. "Macroeconomic Policy, Exchange-Rate Dynamics, and Optimal Asset Accumulation," Journal of Political Economy, University of Chicago Press, vol. 89(6), pages 1142-1161, December.
    19. Clausen Volker & Wohltmann Hans-Werner, 2013. "Oil Price Dynamics and Monetary Policy in a Heterogeneous Monetary Union," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 233(2), pages 159-187, April.
    20. Clements, Kenneth W. & Frenkel, Jacob A., 1980. "Exchange rates, money, and relative prices: The dollar-pound in the 1920s," Journal of International Economics, Elsevier, vol. 10(2), pages 249-262, May.
    21. Tivig, Thusnelda, 1987. "The asset market view on flexible exchange rates: A critical comment," Discussion Papers, Series II 18, University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy".

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:queddp:275164. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/qedquca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.