Have Technological Advances Reduced Response Time of Trade Flows to Changes in the Exchange Rate and Relative Prices?
Mohsen Bahmani-Oskooee () and
Esmaeil Ebadi ()
The International Trade Journal, 2016, vol. 30, issue 2, 115-131
In this article, we conjecture that the speed with which trade flows adjust to exchange rate and relative price changes are faster during post-1990 as compared to pre-1990. We attribute this to the Internet revolution and technological advances that took place during the 1990s. Our hypothesis is supported in 10 out of 16 import and export demand models that are estimated for eight countries. When the models are estimated for the entire sample period, we try to update Orcutt’s (1950) hypothesis that trade flows adjust to exchange rate changes faster than to changes in relative prices. Like previous studies, not much support is found for the later hypothesis and results are country specific.
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:taf:uitjxx:v:30:y:2016:i:2:p:115-131
Ordering information: This journal article can be ordered from
Access Statistics for this article
The International Trade Journal is currently edited by George R. G. Clarke
More articles in The International Trade Journal from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().