Abstract
ABSTRACTIn this article, we conjecture that the speed with which trade flows adjust to exchange rate and relative price changes are faster during post-1990 as compared to pre-1990. We attribute this to the Internet revolution and technological advances that took place during the 1990s. Our hypothesis is supported in 10 out of 16 import and export demand models that are estimated for eight countries. When the models are estimated for the entire sample period, we try to update Orcutt’s (1950) hypothesis that trade flows adjust to exchange rate changes faster than to changes in relative prices. Like previous studies, not much support is found for the later hypothesis and results are country specific.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
