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Trade and Sudden Stop Crises

Brent Neiman and Gita Gopinath

No 220, 2010 Meeting Papers from Society for Economic Dynamics

Abstract: Adjustment primarily occurred through existing importers and exporters changing their product mix. This implies that the macroeconomic impact of such rapid external adjustment does not come from the two channels most focused on in the literature: it does not result from the reallocation of market share from less productive to more productive firms nor from gains or losses of variety at the consumer level. Rather, it suggests the most important impact of external adjustment comes through changes in the productivity of importing firms.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:red:sed010:220

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More papers in 2010 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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