Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries

Carmen Reinhart

MPRA Paper from University Library of Munich, Germany

Abstract: Devaluation is an integral part of adjustment in many developing countries, particularly relied upon by countries facing large external imbalances. A devaluation can only reduce trade imbalances if it translates to a real devaluation and if trade flows respond to relative prices in a sig nificant and predictable manner. However, a recent strand in the empirical trade literature has questioned the existence of a stable relationship between trade flows and its traditional determinants. This paper re-examines the relationship between relative prices and imports and exports in a sample of 12 developing countries.

Keywords: devaluation; imports; exports; trade elasticities (search for similar items in EconPapers)
JEL-codes: F1 F32 (search for similar items in EconPapers)
Date: 1995-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (83)

Published in IMF Staff Papers 2.42(1995): pp. 290-312

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/6974/1/MPRA_paper_6974.pdf original version (application/pdf)

Related works:
Journal Article: Devaluation, Relative Prices, and International Trade: Evidence from Developing Countries (1995)
Working Paper: Devaluation, Relative Prices, and International Trade: Evidence From Developing Countries (1994)
Working Paper: Devaluation, Relative Prices, and International Trade (1994)
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:pra:mprapa:6974

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().