The Composition and Cyclical Behavior of Trade Flows in Emerging Economies

Reinout De Bock

International Economics, 2012, issue 132, 5-33

Abstract: The composition and cyclical properties of imports are similar in developed economies and emerging economies (EM) but this is not the case for exports. Unlike developed economies, (i) EM export few or only a selective set of capital goods and (ii) capital good and overall exports tend to be acyclical. The lack of procyclicality in exports helps to explain the strong countercyclicality of EM trade balances observed in previous studies. A quantitative exercise demonstrates how the standard small open economy business cycle model could be improved upon by incorporating some of these features.

Keywords: International Real Business Cycles; Small Open Economy; Emerging Economy; Trade Balance (search for similar items in EconPapers)
JEL-codes: E32 F32 F41 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S2110701713600578 (text/html)

Related works:
Working Paper: The Composition and Cyclical Behavior of Trade Flows in Emerging Economies (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:cii:cepiie:2012-q4-132-1

Access Statistics for this article

More articles in International Economics from CEPII research center Contact information at EDIRC.
Bibliographic data for series maintained by ().