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 impo...

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Bibliographic Details
Main Author: Abiad, Abdul
Other Authors: Topalova, Petia, Mishra, Prachi
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2011
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a How Does Trade Evolve in the Aftermath of Financial Crises?  |c Abdul Abiad, Petia Topalova, Prachi Mishra 
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300 |a 54 pages 
651 4 |a United States 
653 |a Economic & financial crises & disasters 
653 |a Econometric Modeling: General 
653 |a Econometric analysis 
653 |a Financial crises 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a Gravity models 
653 |a International economics 
653 |a International trade 
653 |a Econometric models 
653 |a Exports 
653 |a Banks and Banking 
653 |a Banking crises 
653 |a Econometrics 
653 |a Econometrics & economic statistics 
653 |a Financial Risk Management 
653 |a Imports 
653 |a Financial Crises 
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700 1 |a Mishra, Prachi 
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520 |a 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