trade, providing a natural hedge against world price fluctuations. We find the consumption terms of trade at local prices is … more volatile than at world prices, but the two are strongly positively correlated. The same commodities dominate the …

trade, providing a natural hedge against world price fluctuations. We find the consumption terms of trade at local prices is … more volatile than at world prices, but the two are strongly positively correlated. The same commodities dominate the …

drivers of volatility at the industry level in open economies. Our methodology separately accounts for demand shocks … of the level of aggregation, output volatility is driven primarily by shocks originating in the destination markets for …