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A widely held view is that openness to international trade leads to higher GDP volatility, as trade increases specialization and hence exposure to sector-specific shocks. We revisit the common wisdom and argue that when country-wide shocks are important, openness to international trade can lower...
Persistent link: https://www.econbiz.de/10013016660
This paper demonstrates theoretically that a financial shock can have very persistent effects on international trade … persistently slower growth rate in trade. We find conditions under which a transitory financial shock significantly reduces the … financial shock, and firm entry investment that requires traded goods. This mechanism provides an example of how firm dynamics …
Persistent link: https://www.econbiz.de/10012921539
Persistent link: https://www.econbiz.de/10012259119
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Persistent link: https://www.econbiz.de/10011755523
This paper demonstrates theoretically that a financial shock can have very persistent effects on international trade … persistently slower growth rate in trade. We find conditions under which a transitory financial shock significantly reduces the … financial shock, and firm entry investment that requires traded goods. This mechanism provides an example of how firm dynamics …
Persistent link: https://www.econbiz.de/10012453213
A widely held view is that openness to international trade leads to higher GDP volatility, as trade increases specialization and hence exposure to sector-specific shocks. We revisit the common wisdom and argue that when country-wide shocks are important, openness to international trade can lower...
Persistent link: https://www.econbiz.de/10012457170
Persistent link: https://www.econbiz.de/10013392255
Persistent link: https://www.econbiz.de/10010213390