Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries

Carmen M. Reinhart ()

IMF Staff Papers, 1995, vol. 42, issue 2, pages 290-312

Abstract: Devaluation is an integral part of adjustment in many developing countries, particularly relied upon by countries facing large external imbalances. A devaluation can only reduce trade imbalances if it translates to a real devaluation and if trade flows respond to relative prices in a significant and predictable manner. However, a recent strand in the empirical trade literature has questioned the existence of a stable relationship between trade flows and its traditional determinants. This paper re-examines the relationship between relative prices and imports and exports in a sample of 12 developing countries.

JEL-codes: F11 F14 F31 F32 (search for similar items in EconPapers)
Date: 1995
References: Add references at CitEc
Citations View citations in EconPapers (19) Track citations by RSS feed

Downloads: (external link)
http://www.jstor.org/stable/3867574?origin=pubexport main text (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries (1995)
Working Paper: Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries (1994)
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: http://EconPapers.repec.org/RePEc:pal:imfstp:v:42:y:1995:i:2:p:290-312

Ordering information: This journal article can be ordered from
Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
http://www.palgrave- ... subscribe/index.html

Access Statistics for this article

More articles in IMF Staff Papers from Palgrave Macmillan
Series data maintained by Elizabeth Gale ().