Publication:
Does Openness Imply Greater Exposure?

dc.contributor.author Calderón, César
dc.contributor.author Loayza, Norman
dc.contributor.author Schmidt-Hebbel, Klaus
dc.date.accessioned 2012-06-21T15:35:58Z
dc.date.available 2012-06-21T15:35:58Z
dc.date.issued 2005-10
dc.description.abstract External exposure can be measured by the sensitivity of first and second moments of economic growth to openness and foreign shocks. This paper provides an empirical evaluation of external exposure using panel data methods for a worldwide sample of countries. Controlling for domestic conditions, the paper examines the growth and volatility effects of outcome measures of trade and financial integration, as well as four types of foreign shocks: terms of trade changes, trading partners' growth rates, international real interest rate changes, and net regional capital inflows. The paper analyzes the possibility of nonlinearities by allowing the growth and volatility effects of openness to vary with the general level of economic development and by letting the effects of foreign shocks depend on the degree of trade and financial integration. The findings point toward strong non-monotonic effects of openness and external shocks on growth and volatility. Moreover, all in all, the results contradict the view that international integration increases external vulnerability by hurting growth and increasing volatility or by amplifying the adverse effect of external shocks. en
dc.identifier http://documents.worldbank.org/curated/en/2005/10/6318232/openness-imply-greater-exposure
dc.identifier.uri http://hdl.handle.net/10986/8645
dc.language English
dc.publisher World Bank, Washington, DC
dc.relation.ispartofseries Policy Research Working Paper; No. 3733
dc.rights CC BY 3.0 IGO
dc.rights.holder World Bank
dc.rights.uri http://creativecommons.org/licenses/by/3.0/igo/
dc.title Does Openness Imply Greater Exposure? en
dspace.entity.type Publication
okr.doctype Publications & Research
okr.doctype Publications & Research :: Policy Research Working Paper
okr.docurl http://documents.worldbank.org/curated/en/2005/10/6318232/openness-imply-greater-exposure
okr.identifier.doi 10.1596/1813-9450-3733
okr.identifier.externaldocumentum 000016406_20050930113334
okr.identifier.internaldocumentum 6318232
okr.identifier.report WPS3733
okr.language.supported en
okr.pdfurl http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2005/09/30/000016406_20050930113334/Rendered/PDF/wps3733.pdf en
okr.unit Development Research Group (DECRG)
okr.volume 1 of 1
relation.isSeriesOfPublication 26e071dc-b0bf-409c-b982-df2970295c87
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