Central banks' interest rate and international trade in BRIC countries: Agriculture vs machinery industry?

Konstantin Borodin and Anton Strokov

No 18, IAMO Forum 2011: Will the "BRICs Decade" Continue? – Prospects for Trade and Growth from Leibniz Institute of Agricultural Development in Central and Eastern Europe (IAMO)

Abstract: The paper investigates interrelations between the dynamics of national central banks' interest rates and international trade within the BRIC countries. It shows that countries with lower interest rates experience growth of the share of machinery industry exports rather than agriculture and food products, and, on the contrary, in countries with higher interest rates the share of agriculture and food exports increases and the share of machinery industry products declines. The investigation has shown that a relative shift in the interest rate can affect the specialization of countries.

Keywords: Central banks' interest rate; Exports; Specialization (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-int and nep-mon
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iamo11:18

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