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This paper analyzes the robustness of emerging economies growth performance to a number of external demand shocks using a Bayesian vector autoregressive (BVAR) model with informative priors on the steady state. Using quarterly data from 1993 to 2011 for global financial conditions and external...
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During the past ten years, the emerging economies, exporters of manufactured products or services, and the rentier states, exporters of primary products, have eroded the dominant position of the developed countries in world markets. The EU15 has lost less ground than the US or Japan. The EU15...
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distribution costs in the export market, high and low productivity firms react differently to a depreciation. Whereas high … productivity firms optimally raise their markup rather than the volume they export, low productivity firms choose the opposite … aggregate impact of exchange rate movements. The presence of fixed costs to export means that only high productivity firms can …
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