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Current Account Reversals and Structural Change in Developing and Industrialized Countries

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  • William D. Craighead

    () (Department of Economics, Wesleyan University)

  • David R. Hineline

Abstract

This paper examines the compositional changes that occur in economies experiencing current account reversals using sectoral-level data on output and employment growth around 55 reversal episodes. The experiences of developing and industrialized countries are compared, and the role of currency crises is also examined. Labor market adjustments following reversals is developing countries is shown to differ from that of industrialized economies. The possibility that this difference is related to labor market informality is briefly examined.

Suggested Citation

  • William D. Craighead & David R. Hineline, 2013. "Current Account Reversals and Structural Change in Developing and Industrialized Countries," Wesleyan Economics Working Papers 2013-001, Wesleyan University, Department of Economics.
  • Handle: RePEc:wes:weswpa:2013-001
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    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance

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