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

Arbeitspapier

This paper investigates the dynamic relationship between terms of trade shocks and the current account in selected small islands developing states. The findings show that the terms of trade explain a significant proportion of the variation in the current account balances. Also, the current account balances reflect a J-curve type reaction to terms of trade innovations. Real output also reacts negatively to changes in the terms of trade.

Object Details

• ISBN: 9291909599=978-92-9190-959-9
• Language: Englisch

References and Relationships

• Bibliographic citation: Series: WIDER Research Paper ; No. 2007/20

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models ; Macroeconomics: Consumption; Saving; Wealth ; Current Account Adjustment; Short-term Capital Movements
• Subject: terms of trade shocks ; current account balance ; panel data ; vector autoregression ; VAR ; Terms of Trade ; Leistungsbilanz ; Insel ; Kleines-Land-Modell

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Santos-Paulino, Amelia U.
• Event: Veröffentlichung
• (who): The United Nations University World Institute for Development Economics Research (UNU-WIDER)
• (where): Helsinki
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/63346
• Last update: 10.03.2025, 11:43 AM CET