Razin, Assaf; Sadka, Efraim; Coury, Tarek - 2022
, 'good' terms-of-trade and investment boom to 'pessimistic' expectations, 'bad' terms-of-trade and investment bust. We also … the level of investment, its cyclical behavior, and the volatility of the terms of trade. Trade openness may lead to boom … typically incur higher setup costs of investment. This phenomenon may help to explain the excessive volatility of the terms of …