Trade Openness and Volatility

Andrei A. Levchenko · Julian di Giovanni

18 citations0/0 files storedIMF Working Paper

No readable copy stored yet — this record is metadata only.

No open-access location is known for this record yet.

Literature note Cite in a project Citation map

Global trade and economics Monetary Policy and Economic Impact Global Financial Crisis and Policies

Abstract

This paper examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is accompanied by increased specialization. Third, sectors that are more open are less correlated with the rest of the economy. The point estimates indicate that each of the three effects has an appreciable impact on aggregate volatility. Added together they imply that the relationship between trade openness and overall volatility is positive and economically significant.

Paper brief

Loading…

Cite this work

Citation unavailable for this work.

BibTeX RIS CSL-JSON

No public copy is stored for this record, so only the metadata is cited.

Citations in this library

Citation map →

Stored only when both papers are in the corpus — 18 citations exist upstream.

References

2003Gravity with Gravitas: A Solution to the Border Puzzle 2006The Log of Gravity 1996Why Do More Open Economies Have Bigger Governments?1999Networks versus markets in international trade 1998The Endogenity of the Optimum Currency Area Criteria 1983Real Business Cycles 1992International Real Business Cycles 1997Has Globalization Gone Too Far?

Cited by

2015Income volatility: whom you trade with matters

Explore the map →

Papers that cite the same references — the relational fallback while embeddings are still backfilling.

Imported from OpenAlex (CC0) — nothing here is generated.