Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/154027
Authors: 
Soares Esteves, Paulo
Rua, António
Year of Publication: 
2013
Series/Report no.: 
ECB Working Paper 1594
Abstract: 
Traditionally, exports behavior is modeled only as a function of the foreign demand and the real exchange rate. However, it is by now widely acknowledged that these variables are not able to fully explain exports developments. This paper suggests considering domestic demand pressure as an additional variable, revisiting its economic rationale and assessing its empirical importance. In particular, we consider the Portuguese case and find that domestic demand developments are relevant for the short-run dynamics of exports. Moreover, it is found that this relationship is asymmetric, being stronger and more significant when domestic demand is falling than when it is increasing.
Subjects: 
Asymmetry
domestic demand pressure
error correction models
exports
JEL: 
C22
C50
F10
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
918.35 kB





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