Export Competitiveness - Fuel Price Nexus in Developing Countries: Real or False Concern?

This paper investigates the impact of domestic fuel price increases on export growth in a sample of 77 developing countries over the period 2000-2014. Using a fixed-effect estimator and the local projection approach, we find that an increase in domestic gasoline or diesel price adversely affects rea...

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Bibliographic Details
Main Author: Kpodar, Kangni
Other Authors: Eklou, Kodjovi, Fabrizio, Stefania
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2019
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a Export Competitiveness - Fuel Price Nexus in Developing Countries: Real or False Concern?  |c Kangni Kpodar, Stefania Fabrizio, Kodjovi Eklou 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2019 
300 |a 34 pages 
651 4 |a China, People's Republic of 
653 |a Real exports 
653 |a Inflation 
653 |a Energy: Demand and Supply 
653 |a Energy 
653 |a International Trade Organizations 
653 |a Other Primary Products 
653 |a Environment 
653 |a Trade Policy 
653 |a Deflation 
653 |a Natural Resources 
653 |a Trade: General 
653 |a Exports and Imports 
653 |a Fuel prices 
653 |a International economics 
653 |a National accounts 
653 |a Export performance 
653 |a Price Level 
653 |a International trade 
653 |a Economic Development: Agriculture 
653 |a Exports 
653 |a Energy and the Macroeconomy 
653 |a Prices 
653 |a Macroeconomics 
653 |a Energy prices 
700 1 |a Eklou, Kodjovi 
700 1 |a Fabrizio, Stefania 
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520 |a This paper investigates the impact of domestic fuel price increases on export growth in a sample of 77 developing countries over the period 2000-2014. Using a fixed-effect estimator and the local projection approach, we find that an increase in domestic gasoline or diesel price adversely affects real non-fuel export growth, but only in the short run as the impact phases out within two years after the shock. The results also suggest that the negative effect of fuel price increase on exports is mainly noticeable in countries with a high-energy dependency ratio and countries where access to an alternative source of energy, such as electricity, is constrained, thus preventing producers from altering energy consumption mix in response to fuel price changes