EconPapers    
Economics at your fingertips  
 

Trade in Commodities and Business Cycle Volatility

David Kohn (), Fernando Leibovici () and Hakon Tretvoll

No 2018-5, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper studies the role of the patterns of production and international trade on the higher business cycle volatility of emerging economies. We study a multi-sector small open economy in which firms produce and trade commodities and manufactures. We estimate the model to match key cross-sectional differences across countries: emerging economies run trade surpluses in commodities and trade deficits in manufactures, while sectoral trade flows are balanced in developed economies. We find that these differences amplify the response of emerging economies to fluctuations in commodity prices. We show evidence consistent with these findings using cross-country data.

Keywords: International business cycles; output volatility; emerging economies (search for similar items in EconPapers)
JEL-codes: E32 F4 F41 F44 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-int, nep-mac and nep-opm
Date: 2018-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://files.stlouisfed.org/files/htdocs/wp/2018/2018-005.pdf Full text (application/pdf)
https://doi.org/10.20955/wp.2018.005 https://doi.org/10.20955/wp.2018.005 (text/html)

Related works:
Working Paper: Trade in Commodities and Emerging Market Business Cycles (2017) Downloads
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:fip:fedlwp:2018-005

Ordering information: This working paper can be ordered from

DOI: 10.20955/wp.2018.005

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of St. Louis Contact information at EDIRC.
Bibliographic data for series maintained by Anna Oates ().

 
Page updated 2019-04-22
Handle: RePEc:fip:fedlwp:2018-005