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Full-Text Articles in International Economics
Exchange Rates As Shock Absorbers: The Role Of Export Margins, Lilia Cavallari
Exchange Rates As Shock Absorbers: The Role Of Export Margins, Lilia Cavallari
Lilia Cavallari
No abstract provided.
Trade Margins And Exchange Rate Regimes: Evidence From A Panel Varx, Lilia Cavallari, Stefano Daddona
Trade Margins And Exchange Rate Regimes: Evidence From A Panel Varx, Lilia Cavallari, Stefano Daddona
Lilia Cavallari
This paper studies output and trade margin dynamics in the aftermath of external shocks in fixed and floating exchange rate regimes. Using a panel VARX model, it traces the mean responses of output, terms of trade, extensive and intensive margins to real and nominal shocks in 22 developed economies over the period 1988-2011. It clarifies the role of trade margins for the transmission of shocks. A business cycle expansion abroad implies positive output spillovers through the trade channel in any exchange rate regime. Yet in the sample of peggers, there is a switch from trade of previously traded goods towards …
Output And Interest Rate Volatility As Determinants Of Fdi, Lilia Cavallari, Stefano D'Addona
Output And Interest Rate Volatility As Determinants Of Fdi, Lilia Cavallari, Stefano D'Addona
Lilia Cavallari
This paper examines the role of country-specific sources of output and interest rate volatility in driving FDI activities. Building on a dataset that comprises bilateral FDI flows among 24 OECD economies over the period 1985-2007, we find that output and interest rate volatility mainly act as push factors, i.e. they are more effective in deterring rather than encouraging foreign investments. A rise in host country volatilities does reduce the amount of FDI outflows in the recipient country, even after controlling for the state of the cycle. Source country volatilities, on the contrary, do not have a systematic effect on foreign …