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Current Account Reversals and Structural Change in Developing and Industrialized Countries


  • William D. Craighead

    () (Department of Economics, Wesleyan University)

  • David R. Hineline


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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    1. Akbulut-Yuksel, Mevlude & Khamis, Melanie & Yuksel, Mutlu, 2011. "Rubble Women: The Long-Term Effects of Postwar Reconstruction on Female Labor Market Outcomes," IZA Discussion Papers 6148, Institute for the Study of Labor (IZA).
    2. Nidhiya Menon & Yana van der Meulen Rodgers, 2010. "War and Women’s Work: Evidence from the Conflict in Nepal," Working Papers 19, Brandeis University, Department of Economics and International Businesss School.
    3. repec:cup:apsrev:v:97:y:2003:i:02:p:189-202_00 is not listed on IDEAS
    4. Kosuke Imai & Jeremy Weinstein, 2000. "Measuring the Economic Impact of Civil War," CID Working Papers 51A, Center for International Development at Harvard University.
    5. Akee, Randall K. Q. & Basu, Arnab K. & Chau, Nancy & Khamis, Melanie, 2010. "Ethnic Fragmentation, Conflict, Displaced Persons and Human Trafficking: An Empirical Analysis," IZA Discussion Papers 5142, Institute for the Study of Labor (IZA).
    6. Joyce P. Jacobsen, 2002. "What About Us? Men’s Issues in Development," Wesleyan Economics Working Papers 2002-001, Wesleyan University, Department of Economics.
    7. Kondylis, Florence, 2010. "Conflict displacement and labor market outcomes in post-war Bosnia and Herzegovina," Journal of Development Economics, Elsevier, vol. 93(2), pages 235-248, November.
    8. repec:hrv:faseco:30703972 is not listed on IDEAS
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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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