We use 4-digit data to document the role of world shocks for intensive and extensive margin of exports. We estimate a VAR model, where the endogenous bloc comprises bilateral export margins and relative GDP, and the exogenous bloc comprises disaggregated measures of world price shocks. We find that world shocks have a significant impact on both the average export volume and export diversification. Impulse responses display considerable heterogeneity depending on the shock considered, the exchange rate regime and the great trade collapse. The evidence in the paper has remarkable consequences for trade and exchange rate policies.

Cavallari, L., D’Addona, S. (2020). Export margins and world shocks: an empirical investigation in fixed and floating regimes. APPLIED ECONOMICS, VOL. 52(20), 2191-2207 [10.1080/00036846.2019.1686113].

Export margins and world shocks: an empirical investigation in fixed and floating regimes

Cavallari, Lilia;D’Addona, Stefano
2020

Abstract

We use 4-digit data to document the role of world shocks for intensive and extensive margin of exports. We estimate a VAR model, where the endogenous bloc comprises bilateral export margins and relative GDP, and the exogenous bloc comprises disaggregated measures of world price shocks. We find that world shocks have a significant impact on both the average export volume and export diversification. Impulse responses display considerable heterogeneity depending on the shock considered, the exchange rate regime and the great trade collapse. The evidence in the paper has remarkable consequences for trade and exchange rate policies.
Cavallari, L., D’Addona, S. (2020). Export margins and world shocks: an empirical investigation in fixed and floating regimes. APPLIED ECONOMICS, VOL. 52(20), 2191-2207 [10.1080/00036846.2019.1686113].
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11590/357639
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? 0
social impact