Export Dynamics in Large Devaluations
George Alessandria,
Sangeeta Pratap and
Vivian Yue
No 62013, Working Papers from Hong Kong Institute for Monetary Research
Abstract:
This paper studies export dynamics in emerging markets following large devaluations. We document two main features of exports that are puzzling for standard trade models. First, given the change in relative prices, exports tend to grow gradually following a devaluation. Second, high interest rates tend to suppress exports. To address these features of export dynamics, we embed a model of endogenous export participation due to sunk and per period export costs into an otherwise standard small open economy. In response to shocks to productivity, interest rates, and the discount factor, we find the model can capture the salient features of export dynamics documented. At the aggregate level, the features giving rise to sluggish export dynamics leading to more gradual net export dynamics, sharper contractions in output, and endogenous declines in labor productivity
Keywords: Export Dynamics; Devaluation; Net Exports (search for similar items in EconPapers)
JEL-codes: E31 F12 (search for similar items in EconPapers)
Pages: 48 pages
Date: 2013-05
New Economics Papers: this item is included in nep-dge, nep-int and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)
Downloads: (external link)
http://www.hkimr.org/uploads/publication/351/wp-no-06_2013-final-.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.hkimr.org/uploads/publication/351/wp-no-06_2013-final-.pdf [301 Moved Permanently]--> http://www.aof.org.hk/research/HKIMR/uploads/publication/351/wp-no-06_2013-final-.pdf [301 Moved Permanently]--> https://www.aof.org.hk/research/HKIMR/uploads/publication/351/wp-no-06_2013-final-.pdf)
Related works:
Working Paper: Export dynamics in large devaluations (2013) 
Working Paper: Export dynamics in large devaluations (2013) 
Working Paper: Export Dynamics in Large Devaluations (2012) 
Working Paper: Export Dynamics in Large Devaluations (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hkm:wpaper:062013
Access Statistics for this paper
More papers in Working Papers from Hong Kong Institute for Monetary Research Contact information at EDIRC.
Bibliographic data for series maintained by HKIMR ().