Import Protection, Capital Flows, and Real Exchange Rate Dynamics

This paper focuses on the effect of import protection on the response of the real exchange rate to capital flows. The central hypothesis is that barriers to imports blunt the expenditure and production shifting effects of changes in relative prices, and hence the ability of the real exchange rate to equilibrate the economy in response to international capital flows. Employing a cross-section approach, the study focuses on three broadly similar countries but with very different levels of protection: Argentina, Australia, and Canada. The empirical results are consistent with the central hypothesis.


Issue Date:
2003-05
Publication Type:
Journal Article
DOI and Other Identifiers:
Print ISSN 1514-0326 (Other)
Online ISSN 1667-6726 (Other)
PURL Identifier:
http://purl.umn.edu/44073
Published in:
Journal of Applied Economics, Volume 06, Number 1
Page range:
177-203
Total Pages:
27
JEL Codes:
F13; F32; F41




 Record created 2017-04-01, last modified 2017-04-27

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