After investment, exports and imports are the most volatile components of aggregate demand within countries. Moreover, the volatility of growth and the volatility of trade flows tend to move together; they declined from the 1990s until 2009, followed by an increase since 2009. This paper explores the drivers of such movements in trade-flow volatility. The analysis decomposes trade growth into six components to study their contribution to the overall...
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2016/08/04
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WPS7781
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1
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1
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2016/08/04
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Disclosed
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The volatility of international trade flows in the 21st century : whose fault is it anyway ?
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process of trade liberalization
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