When analyzing terms-of-trade shocks, it is implicitly assumed that the economy responds symmetrically to changes in export and import prices. Using a sample of developing countries our paper shows that this is not the case. We construct export and import price indices using commodity and...

This paper analyzes the macroeconomic adjustment in commodity-exporting countries to commodity price shocks. First, I estimate a heterogenous panel SVAR using data from 22 commodity-exporting economies spanning the period 1980-2017. I find that commodity terms of trade shocks are an important...

I examine the effect of exogenous terms of trade shocks on an exchange rate by turning to New Zealand's dairy auctions. Dairy is New Zealand's largest export category, making up almost 20 percent of exports. Specifically, whole milk powder accounts for 6 to 11 percent of total exports, and its...