Is there a role for domestic demand pressure on export performance?

António Rua and Paulo Esteves

No 1594, Working Paper Series from European Central Bank

Abstract: Traditionally, exports behavior is modeled only as a function of the foreign demand and the real exchange rate. However, it is by now widely acknowledged that these variables are not able to fully explain exports developments. This paper suggests considering domestic demand pressure as an additional variable, revisiting its economic rationale and assessing its empirical importance. In particular, we consider the Portuguese case and find that domestic demand developments are relevant for the short-run dynamics of exports. Moreover, it is found that this relationship is asymmetric, being stronger and more significant when domestic demand is falling than when it is increasing. JEL Classification: C22, C50, F10

Keywords: asymmetry; domestic demand pressure; error correction models; exports (search for similar items in EconPapers)
Date: 2013-09
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpwps/ecbwp1594.pdf (application/pdf)

Related works:
Journal Article: Is there a role for domestic demand pressure on export performance? (2015)
Working Paper: Is there a role for domestic demand pressure on export performance? (2013)
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:ecb:ecbwps:20131594

Access Statistics for this paper

More papers in Working Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().