Razin, Assaf; Sadka, Efraim; Coury, Tarek - 2022
In the presence of economies of scale in the investment technology, trade openness may have non-conventional effects on … the level of investment, its cyclical behavior, and the volatility of the terms of trade. Trade openness may lead to boom …, 'good' terms-of-trade and investment boom to 'pessimistic' expectations, 'bad' terms-of-trade and investment bust. We also …