, a theoretical model is developed to explain price transmission for different trade regimes. Drawing from the competitive … if no trade takes place but future trade is expected. Using a global database on food prices, we construct national and …

from 1974-2000. The real imports trend drifts upward at almost twice the rate of growth of GDP. This highlights the … leads to a 0.4 percent increase in imports. And in the long-run, 1 percent real GDP growth is associated with 1.7 percent … real imports growth. The author also shows that the GDP elasticity of imports uniformly falls with cycle period, with the …