European Parliament Library

How Does Trade Evolve in the Aftermath of Financial Crises?, Abdul Abiad, Petia Topalova, Prachi Mishra

Abstract
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 levels only after 10 years. In contrast, exports of the crisis country are not adversely affected, and they remain close to the predicted level in both the short and medium-term
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; Figure 1. Growth Rate of World Real Imports; Figure 2. Evolution of Imports in Crisis and Non-Crisis Countries; II. Methodology; III. A First Look at the Data; Figure 3. Distribution of Crises across Time and Regions; Table 1. Sample Characteristics; Figure 4. Evolution of Imports and Exports Following Crises: A First Look; IV. Gravity Framework Results; A. Main Findings; Table 2. Imports and Exports Following Crises: Pooled Panel Gravity Estimates, 1970-2009
Language
eng
Literary Form
non fiction
Note
Description based upon print version of record
Physical Description
1 online resource (69 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9786613872616

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