Based on an empirical gravity model of sectoral bilateral trade, we uncover three features of bilateral trade balances … unobservable bilateral trade costs. Second, the model fit improves drastically when we focus on changes over time of the balances …. Third, using a log linear approximation we show that changes in bilateral trade balances over the past two decades were …

There is an ongoing debate in the literature on whether global trade flows have become disconnected from the large real … effective exchange rate remains an important determinant of trade flows. But, its effect is not symmetric in secular periods of … appreciation and depreciation and is, oftentimes, dwarfed by the impact on trade flows of the income growth differential between …

. Using a sign-restricted structural VAR approach, we study the trade spillovers of the post-crisis policy mix, by assessing … the joint impact of monetary and fiscal policy. We find that aggregate trade effects, as reflected in the trade balance …

Monetary policy entails demand augmenting and demand diverting effects, with its impact on the trade balance …-restricted structural VAR identification strategy, we investigate how monetary policy shocks affects the trade balance, shedding light on … the importance of the two effects. Overall, the results indicate that monetary policy has a meaningful impact on the trade …

trade balance. The results show little or no relationship with the exchange rate and, especially for the less diversified …

series and cross-section behavior of sectoral trade balances. Unit labor costs and trade balances are calculated for several … time in sectoral trade balances, especially for the United States and Japan, are quite well explained by the evolution of … unit labor cost, suggesting that trade patterns conform to comparative advantage. The cross-section results are, however …

Using two recently constructed measures of trade liberalization dates, this research studies the impact of trade … liberalization on imports, exports, and overall trade balance for a large sample of developing countries. We find strong and … consistent evidence that trade liberalization leads to higher imports and exports. However, in contrast Santos-Paulino and …

We use a general-equilibrium model to explain the rise in global trade and payments imbalances since the mid-1990s, and … suddenly reverse, simulated movements in the U.S. trade deficit and exchange rate are smaller and more gradual than suggested …

This paper develops and estimates a model of the trade balance of Bosnia and Herzegovina. Credit flows and the fiscal … stance are found to play a significant role in determining the trade balance. On this basis the paper discusses the trade …