04277oam 22010334 450 991081986950332120200520144314.01-4623-6800-X1-4527-6934-61-282-10856-51-4519-0560-29786613801913(CKB)3360000000442615(EBL)3012564(SSID)ssj0000948678(PQKBManifestationID)11530958(PQKBTitleCode)TC0000948678(PQKBWorkID)10950750(PQKB)11656779(OCoLC)535146978(MiAaPQ)EBC3012564(IMF)WPIEE2005005(IMF)WPIEA2005005(EXLCZ)99336000000044261520020129d2005 uf 0engur|n|---|||||txtccrTrade Costs and Real Exchange Rate Volatility : The Role of Ricardian Comparative Advantage1st ed.Washington, D.C. :International Monetary Fund,2005.1 online resource (44 p.)IMF Working Papers"January 2005."1-4518-6024-2 Includes bibliographical references (p. 41-43).""Trade Costs and Real Exchange Rate Volatility: The Role of Ricardian Comparative Advantage""; ""Contents""; ""I. INTRODUCTION""; ""II. MULTI-COUNTRY MODEL""; ""III. EXAMPLE""; ""IV. EMPIRICAL EVIDENCE""; ""V. CONCLUSION""; ""APPENDIX MULTI-COUNTRY REAL EXCHANGE RATE VOLATILITY""; ""REFERENCES""This paper examines the impact of trade costs on real exchange rate volatility. We incorporate a multi-country Ricardian model of trade, based on the work of Eaton and Kortum (2002), into a macroeconomic model to show how bilateral real exchange rate volatility depends on relative technological differences and trade costs. These differences highlight a new channel, in which the similarity of a pair of countries' set of suppliers of traded goods affects bilateral exchange rate volatility. We then test the importance of this channel using a large panel of cross-country data over 1970-97, and find strong evidence supporting the channel.IMF Working Papers; Working Paper ;No. 2005/005Foreign exchange ratesEconometric modelsComparative advantage (International trade)Econometric modelsCurrencyimfDeflationimfExchange rate arrangementsimfExchange ratesimfExports and ImportsimfForeign ExchangeimfForeign exchangeimfInflationimfInternational economicsimfInternational Finance: GeneralimfInternational Trade OrganizationsimfInternational tradeimfMacroeconomic Aspects of International Trade and Finance: GeneralimfMacroeconomicsimfPlurilateral tradeimfPrice indexesimfPrice LevelimfReal exchange ratesimfTrade PolicyimfForeign exchange ratesEconometric models.Comparative advantage (International trade)Econometric models.CurrencyDeflationExchange rate arrangementsExchange ratesExports and ImportsForeign ExchangeForeign exchangeInflationInternational economicsInternational Finance: GeneralInternational Trade OrganizationsInternational tradeMacroeconomic Aspects of International Trade and Finance: GeneralMacroeconomicsPlurilateral tradePrice indexesPrice LevelReal exchange ratesTrade PolicyInternational Monetary Fund.Research Dept.DcWaIMFBOOK9910819869503321Trade Costs and Real Exchange Rate Volatility4271368UNINA