How Does Trade Evolve in the Aftermath of Financial Crises?

How Does Trade Evolve in the Aftermath of Financial Crises?
We analyze trade dynamics following past episodes of financial crises. Using an augmented gravity model and 179 crisis episodes from 1970-2009, we find that there is a sharp decline in a country's imports in the year following a crisis-19 percent, on average-and this decline is persistent, with imports recovering to their gravity-predicted... READ MORE...

Publication date: January 2011
ISBN 9781455211814
$18.00

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