What Happened to Asian Exports During the Crisis?

Antonio Spilimbergo and Rupa Duttagupta

No 2000/200, IMF Working Papers from International Monetary Fund

Abstract: After the large exchange rate depreciations following the 1997 East Asian crisis, export volumes from East Asian countries responded with a notable lag. Two main explanations for this lag have been proposed: that the policy of high interest rates limited access to domestic credit and hence limited the supply of exports; and that “competitive depreciation” neutralized the effects on demand for exports. This paper considers the plausibility of these two mechanisms using a new monthly database on exports of selected industries. We find evidence that “competitive depreciation” did play a fundamental role in the propagation of the East Asian crisis through the trade channel, even at a monthly frequency.

Keywords: WP; demand and supply; supply price; credit crunch; Cointegration; Competitive Depreciation; Export Demand and Supply; East Asia; export demand and supply equation; export supply; export equation; export volume; export decline; growth rate; export variable; export quantity; equilibrium point; demand and supply supply curve; Exports; Export prices; Depreciation; Domestic credit; Export earnings (search for similar items in EconPapers)
Pages: 31
Date: 2000-12-01
References: Add references at CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=3914 (application/pdf)

Related works:
Journal Article: What Happened to Asian Exports During the Crisis? (2004)
Working Paper: What Happened to Asian Exports During the Crisis? (2003)
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:imf:imfwpa:2000/200

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().