Engel, Charles; Wang, Jian - In: Journal of International Economics 83 (2011) 1, pp. 37-52
Data for OECD countries document: 1. imports and exports are about three times as volatile as GDP; 2. imports and exports are pro-cyclical, and positively correlated with each other; 3. net exports are counter-cyclical. Standard models fail to replicate the behavior of imports and exports,...