Regional Absorption of Terms of Trade Shocks
Eduardo Haddad () and
Fernando Perobelli ()
ERSA conference papers from European Regional Science Association
As the process of global integration evolves, developing economies become more and more dependent upon the swings of international markets. Changes in the external environment and economic policy have played a major role in determining the performance of these economies. Terms of trade shocks represent one of the most important issues related to recent developments in low and middle income countries, whose effects have been widely studied in the economic literature. However, attention has always been focused on the national economies, without any consideration of the ability of these economies to absorb these shocks through interregional interactions. In this paper we address this issue using an bottom-up interregional CGE model. It is shown that the degree of integration of the national economies helps to absorb external shocks, decreasing the adverse impacts of negative terms of trade shocks as the economy becomes more integrated.
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:wiw:wiwrsa:ersa01p185
Access Statistics for this paper
More papers in ERSA conference papers from European Regional Science Association Welthandelsplatz 1, 1020 Vienna, Austria.
Series data maintained by Gunther Maier ().