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This paper investigates nonlinear relationships between terms of trade volatility (totvol) and economic growth in 14 Latin American economies from 1997 to 2014. In the 2000s, countries experienced accelerated often attributed commodity price booms. We split sample into two regimes based on totvol thresholds determined by bootstrap techniques. Fixed effects, instrumental variable dynamic panel r...

The primary goal of any economic policy in the production front is, as far as possible to enhance the degree of sectoral interrelatedness (henceforh SI) within the home economy. The focal objective of such policy is not only to increase the sectoral value added of the economy but also to improve the position of the trade balance in the commodity trade front. Iran, being characterized a sole mon...

This paper investigates the impact of terms of trade movements on the stance of fiscal policy. This analysis is timely and important because the volatility of the terms of trade has increased in recent years, largely due to significant fluctuations in commodity prices. Moreover, the prominence of fiscal policy has increased as countries have adopted aggressive discretionary actions to combat th...

a r t i c l e i n f o The S-shaped cross-correlation function between the trade balance and the terms of trade has been documented for several countries and time frames. The ability of two-country, two-good business cycle models to reproduce this regularity hinges on the dynamics of capital formation. We consider the consequences of modeling the adjustment costs for comovement in the trade bala...