This paper studies the role of financial market imperfections in the way countries' exports react to a currency depreciation. Using quarterly data for 27 developed and developing countries over the period 1990-2005, we show that the impact of a depreciation will be less positive - or even...

The empirical U-shaped pattern between product diversification and economic development has been widely examined, but here we analyze the determinants of diversification. We find that a high level of rent-seeking activities has a large impact on the diversification of nations: in countries where...

Using a gravity model for 35 countries and the years 1995-2006 we estimate the impact of regional trade agreements in Africa (in particular ECOWAS and SADC) and compare this to the a benchmark of North South trade integration (Europe's preferential trade agreement). We find that - ECOWAS and...

This paper uses the gravity model of trade to investigate the link between foreign aid and exports in recipient countries. Most of the theoretical work emphasizes the negative impact of aid on recipient countries' exports primarily due to exchange rate appreciation, disregarding possible...

Significant changes have taken place on the world wheat market over the last decade. Russia, a former net wheat importer has become a leading exporter with a world market share of 13.8 percent in 2009/2010. Though there are several studies on the pricing behaviour of Canadian and US wheat...

The last decade of the 20th century and the first decade of the current century have seen a continuous shift of the economic dynamic from North American and European countries to the pacific countries, specially the ones located on Eastern Asia, highlighting the Chinese growth. However, Brazil...

Based on the gravity model of international trade, this paper initially analyzes North Korea's international trade pattern, which tends to follow the prediction of the gravity model: a positive relationship between trade and trading partners' GDP, and negative relationship between trade and...

The distance puzzle has been wildly discussed in the literature since Leamer and Levinsohn (1995) shed the light on it. This puzzle simply says that "the world is not getting smaller": distance still matters to account for trade. This is reflected in a decreasing distance of trade (DOT), or in a...

This article evaluates from the Global Dimension of Regional Integration Model (GDRI - MODEL) developed by Estrada (2004) which the level of regional integration in the year of 2007 for the Common Market of the South - MERCOSUR, considering Argentina, Brazil, Paraguay and Uruguay (Members of the...

In previous research, we analysed the effect of technological innovation, understood as absorptive capacity, on exports by using a gravity model of trade for the year 2000 (see Márquez-Ramos and Martínez-Zarzoso, 2009). We found that the effect of technological innovation on trade varies...