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Terms of trade shocks and the current account in small island developing states

[journal article]

Santos-Paulino, Amelia

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Please use the following Persistent Identifier (PID) to cite this document:http://nbn-resolving.de/urn:nbn:de:0168-ssoar-251437

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Abstract The paper investigates the dynamic relationship between external and internal shocks and the current account in selected small island developing states. External shocks, defined as terms of trade fluctuations, explain a significant proportion of the variation in the current account balances. The external shocks have a temporary negative impact on the current account balances with a subsequent improvement, generating a J-curve type reaction. In contrast, real output shocks have a positive and significant effect on the current account.
Classification Political Economy
Free Keywords terms of trade shocks; current account balance; panel data; VAR; small islands developing states; C33; E21; F32
Document language English
Publication Year 2010
Page/Pages p. 855-876
Journal Journal of Development Studies, 46 (2010) 5
DOI http://dx.doi.org/10.1080/00220381003623830
Status Postprint; reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)
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