Trade Prices and the Global Trade Collapse of 2008–09

Gopinath, Gita; Itskhoki, Oleg; Neiman, Brent

doi:10.1057/imfer.2012.17

Cited by 46 publications

(39 citation statements)

References 35 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…We follow Hassler (1996) in modeling the dynamic inventory problem. In 7 The prices of differentiated manufactured goods in international trade were essentially unchanged during the trade collapse of 2008/09, as documented by Gopinath, Itskhoki, and Neiman (2012). Their evidence further motivates our assumption of a given input price.…”

Section: Inventory and Tradementioning

confidence: 69%

“…This modeling strategy is supported by the empirical regularity documented by Gopinath, Itskhoki, and Neiman (2012) showing that prices of differentiated manufactured goods (both durables and nondurables) hardly 3 Leibovici and Waugh (2012) show that the increase in implied trade frictions can be rationalized by a model with time-to-ship frictions such that agents need to finance future imports upfront (similar to a cash-in-advance technology) and become less willing to import in the face of a negative income shock. changed during the trade collapse of 2008/09.…”

Section: Introductionmentioning

confidence: 84%

See 1 more Smart Citation

Trade and Uncertainty

Novy¹,

Taylor²

2014

View full text Add to dashboard Cite

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or foreign suppliers, but with higher costs in the latter case. Due to fixed costs of ordering firms hold an inventory of intermediates. We show that in response to an uncertainty shock firms optimally adjust their inventory policy by cutting their orders of foreign intermediates disproportionately strongly. In the aggregate, this response leads to a bigger contraction in international trade flows than in domestic economic activity. We confront the model with newly-compiled monthly aggregate U.S. import data and industrial production data going back to 1962, and also with disaggregated data back to 1989. Our results suggest a tight link between uncertainty and the cyclical behavior of international trade.

show abstract

Section: Inventory and Tradementioning

confidence: 69%

Section: Introductionmentioning

confidence: 84%

Trade and Uncertainty

Novy¹,

Taylor²

2014

View full text Add to dashboard Cite

show abstract

“…As export prices are not observed, as a proxy we compute the unit values of exports by dividing the value in US dollars by the volume in liters. As in Chen and Juvenal (2015), and in contrast to papers that de…ne products according to trade classi…cations such as the CN or the HS (e.g., Behrens et al, 2013;Berthou and Emlinger, 2010;Levchenko et al, 2011), the granularity of our data ensures that compositional or quality changes do not a¤ect movements in unit values (Feenstra and Romalis, 2014;Gopinath et al, 2012).…”

Section: Firm-level Customs Datamentioning

confidence: 96%

“…Evidence that trade protectionism increased during the crisis is limited (Eaton et al, 2015;Kee, Neagu, and Nicita, 2013). Regarding prices, Gopinath, Itskhoki, and Neiman (2012) …nd that in the US, the trade prices of non-di¤erentiated manufactures sharply declined. 11 Fourth, our work relates more broadly to papers that analyze trade patterns during macroeconomic crises in general.…”

Section: Introductionmentioning

confidence: 99%

Quality and the Great Trade Collapse

Chen

Juvenal

2016

SSRN Journal

View full text Add to dashboard Cite

We explore whether the global …nancial crisis has had heterogeneous e¤ects on traded goods di¤erentiated by quality. Combining a dataset of Argentinean …rm-level destination-speci…c wine exports with quality ratings, we show that higher quality exports grew faster before the crisis, but this trend reversed during the recession. Quantitatively, the e¤ect is large: up to nine percentage points di¤erence in trade performance can be explained by the quality composition of exports. This ‡ight from quality was triggered by a fall in aggregate demand, was more acute when households could substitute imports by domestic alternatives, and was stronger for smaller …rms' exports.JEL Classi…cation: F10, F14, F41

show abstract

“…Differentiated products, by contrast, not only enjoy higher margins but are more recession-proof (see Gopinath, Itskhoki and Neiman 2011).…”

Section: Which Market Segments Which Destinations To Target Which Vmentioning

confidence: 99%

Is Georgia the Next “New” Wine-Exporting Country?

Anderson¹

2013

J Wine Econ

View full text Add to dashboard Cite

The former Soviet republic of Georgia is reputedly the cradle of wine and has enjoyed at least 8000 vintages. It has also been a major supplier of wine to Russia for at least 200 years, but to few other countries. In 2006, however, Russia imposed a ban on beverage imports from Georgia. Since then this relatively poor country, in which nearly half the population is rural and most farmers (average holding 1.2 ha) have a vineyard, has been seeking to develop new export markets for its wine. This paper assesses the potential for growth in Georgia's wine production and exports. It then outlines ways to addresses the challenges involved in trying to realize that potential, drawing on the experience of other countries that have expanded their wine exports in the past two decades. Implications for policy are drawn out in the final section.

show abstract

Trade Prices and the Global Trade Collapse of 2008–09

Cited by 46 publications

References 35 publications

Trade and Uncertainty

Trade and Uncertainty

Quality and the Great Trade Collapse

Is Georgia the Next “New” Wine-Exporting Country?

Contact Info

Product

Resources

About