Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/57307
Authors: 
Loening, Josef L.
Higashi, Masato
Year of Publication: 
2010
Series/Report no.: 
Discussion papers, Ibero America Institute for Economic Research 205
Abstract: 
This paper proposes a technique to decompose short-run fluctuations in the terms of trade. Using Ethiopia as an example, we decompose the commodity terms of trade into various components to measure the impact of price and volume shifts as well as export diversification. We use monthly data from the past decade, including periods during the global food and financial crises. Our findings suggest that diversification out of traditional coffee exports to other export commodities successfully mitigated a terms of trade shock. Continued export diversification will be beneficial.
Subjects: 
Terms of Trade
Food Price Crisis
Financial Crisis
Ethiopia
JEL: 
F14
O11
O55
Document Type: 
Working Paper

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