As a less restrictive trade regime is associated with greater responsiveness to economic incentives, econometric evidence that does not allow for the impact of import controls cannot be used reliably to assess the effect of a devaluation on the trade balance. Indeed, devaluation combined with trade liberalization ( a common feature of many adjustment programs) will have a more pronounced effect on import demand than available evidence would suggest...
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1988/11/30
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Documento de trabalho sobre pesquisa de políticas
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WPS122
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1
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1
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2010/07/01
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Import demand in developing countries
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foreign exchange
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