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In the five years 2011-2015 global trade fell short of expectations to a much larger extent than global GDP. We show that two key features of real trade flows − their high volatility and their procyclicality − are the cause behind the cyclicality of the income elasticity of trade. This...
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and foreign GDP as well as mutual trade flows. Conventional macroeconomic theory mainly follows partial approaches like …
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The author examines the impact of historical global downturns on trade flows. The results provide insight into why trade has dropped so dramatically in the current crisis, what is likely to happen in the coming years, how global imbalances are affected, and which regions and industries suffer...
Persistent link: https://www.econbiz.de/10011394309
The author examines the impact of historical global downturns on trade flows. The results provide insight into why trade has dropped so dramatically in the current crisis, what is likely to happen in the coming years, how global imbalances are affected, and which regions and industries suffer...
Persistent link: https://www.econbiz.de/10013009188