Please use this identifier to cite or link to this item:
Razmi, Arslan
Blecker, Robert
Year of Publication: 
Series/Report no.: 
Working Paper 2005-18
This paper studies whether intra-developing country price competition has significant effects on the short-run growth rates of developing countries that are specialized in manufactured exports. Regression estimates using the generalized method of moments (GMM) applied to annual panel data for 17 developing countries in 1983-2004 show that these countries exhibit a “fallacy of composition,” in the sense that a real depreciation relative to competing developing country exporters increases the home country’s growth rate in the short run. The results also suggest that real depreciations for these developing countries relative to the industrialized countries are contractionary. JEL Categories: F43, O19, O14, F14
Export-led growth
fallacy of composition
terms of trade
manufactured exports
contractionary devaluations
competitive devaluations
Document Type: 
Working Paper

Files in This Item:
544.54 kB

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.