a column by Hakan Yilmazkuday for VOX: CEPR’s Policy Portal
During the Global Crisis, international trade decreased more than overall economic activity, despite standard trade models predicting a one-to-one relationship. This ‘Great Trade Collapse’ has been investigated extensively in the literature, resulting in alternative competing explanations.
This column evaluates the contribution of each story using data from the US. The results show that retail inventories have contributed the most to the collapse and the corresponding recovery, followed by protectionist policies, intermediate-input trade, and trade finance. Productivity and demand shocks have played negligible roles.
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Showing posts with label great_trade_collapse. Show all posts
Showing posts with label great_trade_collapse. Show all posts
Tuesday, 27 August 2019
Saturday, 16 June 2018
Anatomy of a trade collapse: The UK, 1929-33
a column by Alan de Bromhead, Alan Fernihough, Markus Lampe and Kevin O'Rourke for VOX: CEPR’s Policy Portal
The literature has identified several stylised facts which characterise the nature and causes of the collapse in international trade during 2008 and 2009.
This column uses detailed, commodity-specific information on UK imports between 1929 and 1933 to document several similarities between the trade collapses of the Great Depression and the Great Recession.
The findings are in line with theories emphasising the composition of expenditure changes during major economic crises, or the relative sizes of firms operating closer to or further away from the margin between exporting or not.
Continue reading
The literature has identified several stylised facts which characterise the nature and causes of the collapse in international trade during 2008 and 2009.
This column uses detailed, commodity-specific information on UK imports between 1929 and 1933 to document several similarities between the trade collapses of the Great Depression and the Great Recession.
The findings are in line with theories emphasising the composition of expenditure changes during major economic crises, or the relative sizes of firms operating closer to or further away from the margin between exporting or not.
Continue reading
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