Unpacking services trade during the Great Trade Collapse: time series evidence for the US

Janet Ceglowski ()
Additional contact information
Janet Ceglowski: Bryn Mawr College

Review of World Economics (Weltwirtschaftliches Archiv), 2017, vol. 153, issue 3, No 2, 457-486

Abstract: Abstract This study investigates the apparent resilience of services trade during the 2008–2009 global recession by analyzing the time-series behavior of aggregate US services exports and imports over 1987–2014. It finds evidence of structural instability in the long-run trade equations but little evidence it is coincident with the global recession. It also uncovers a distinct pattern in the income elasticity of business services trade: a large long-run value but a significantly smaller short-run value. Combined with its large weight in total US services trade, the limited short-run demand response of business services trade dampened the effect of the economic downturn on aggregate services trade. Far from being an anomaly, the response of US services trade to the 2008–2009 global recession was consistent with its time-series and compositional characteristics.

Keywords: Services trade; Income elasticity; Great Trade Collapse (search for similar items in EconPapers)
JEL-codes: F14 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s10290-016-0274-9 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:weltar:v:153:y:2017:i:3:d:10.1007_s10290-016-0274-9

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10290/PS2

DOI: 10.1007/s10290-016-0274-9

Access Statistics for this article

Review of World Economics (Weltwirtschaftliches Archiv) is currently edited by Paul Bergin, Holger Görg, Cédric Tille and Gerald Willmann

More articles in Review of World Economics (Weltwirtschaftliches Archiv) from Springer, Institut für Weltwirtschaft (Kiel Institute for the World Economy) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().