Devaluation, Relative Prices, and International Trade; Evidence From Developing Countries
Devaluation is an integral part of adjustment in many developing countries, particularly relied upon by countries facing large external imbalances. A devaluation can only reduce trade imbalances if it translates to a real devaluation and if trade flows respond to relative prices in a significant and predictable manner. However, a recent strand in the empirical trade literature has questioned the existence of a stable relationship between trade flows and its traditional determinants. This paper re-examines the relationship between relative prices and imports and exports in a sample of 12 developing countries.
Year of publication: |
1994-11-01
|
---|---|
Authors: | Reinhart, Carmen |
Institutions: | International Monetary Fund (IMF) |
Saved in:
freely available
Saved in favorites
Similar items by person
-
Capital Flows in the APEC Region
Reinhart, Carmen, (1995)
-
Capital Inflows and Real Exchange Rate Appreciation in Latin America; The Role of External Factors
Leiderman, Leonardo, (1992)
-
Fiscal Policy, the Real Exchange Rate and Commodity Prices
Reinhart, Carmen, (1990)
- More ...