Financial crises hit imports hardest: IMF research
A paper by the International Monetary Fund published on Wednesday shows that historically countries experience a substantial decline in imports but little change in exports following a financial crisis.
Abdul Abiad, Prachi Mishra and Petia Topalova – the paper's authors – use an augmented gravity model to analyse trade dynamics following 179 past episodes of financial crises from 1970 to 2009.
Abiad, Mishra and Topalova find evidence of a sharp and persistent decline in a country's imports
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