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Persistent differences in interest rates across countries account for much of the profitability of currency carry trade strategies. "Commodity currencies'' tend to have high interest rates while low interest rate currencies belong to exporters of finished goods. This pattern arises in a...
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We study how international trade and the exporting decisions of establishments affect establishment creation over the business cycle in a general equilibrium model. The model captures two key features of establishment and exporter dynamics: i) new establishments start small and grow over time...
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of natural resource abundance, export concentration and intra-industry trade. We test the robustness of these … growth, especially natural resource abundance and export concentration. In contrast to much of the recent literature, natural … resource abundance appears to have a positive effect on growth whereas export concentration hampers growth …
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