The Great Trade Collapse
36 Pages Posted: 22 Dec 2012 Last revised: 31 May 2023
There are 2 versions of this paper
The Great Trade Collapse
Date Written: December 2012
Abstract
We survey recent literature on the causes of the collapse in international trade during the 2008-2009 global recession. We argue that the evidence points to the collapse in aggregate expenditure, concentrated on trade-intensive durable goods, as the main driver of the trade collapse. Inventory adjustment likely amplified the impact of these expenditure changes on trade. In addition, shocks to credit supply constrained export supply further exacerbating the decline in trade. Most evidence suggests that changes in trade policy did not play a large role. We conclude that one benefit of the trade collapse is that it has stimulated research in neglected areas at the intersection of trade and macroeconomics.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
The Collapse of International Trade During the 2008-2009 Crisis: In Search of the Smoking Gun
By Andrei A. Levchenko, Logan T. Lewis, ...
-
By Mary Amiti and David E. Weinstein
-
By Mary Amiti and David E. Weinstein
-
Off the Cliff and Back? Credit Conditions and International Trade During the Global Financial Crisis
By Davin Chor and Kalina Manova
-
Off the Cliff and Back? Credit Conditions and International Trade During the Global Financial Crisis
By Davin Chor and Kalina Manova
-
Trade and the Global Recession
By Jonathan Eaton, Samuel S. Kortum, ...
-
Trade and the Global Recession
By Jonathan Eaton, Samuel S. Kortum, ...