文献类型：期刊文献

英文题名：Borrowing constraints and the trade balance-output comovement

作者：Zhao, Yan

机构：[1]E China Univ Sci & Technol, Sch Business, Shanghai 200237, Peoples R China

年份：2013

卷号：32

起止页码：34

外文期刊名：ECONOMIC MODELLING

收录：;WOS:【SSCI(收录号:WOS:000319632600006)】；

语种：英文

外文关键词：Real business cycle; Small open economy; Borrowing constraints

摘要：The countercyclical trade balance ratio is among the key stylized facts about open economies. The magnitude of the correlation between the trade balance and output, however, differs from country to country. In particular, the trade balance ratio is more negatively correlated with output in emerging economies than in developed economies, suggesting that the trade balance is more sensitive to output changes in the former than in the latter. This paper explores whether this difference is caused by international borrowing constraints imposed on emerging economies. By modeling borrowing constraints as conditional on macroeconomic performance, this paper shows that when there is a positive shock takes place in an emerging economy, GDP increases and the borrowing constraint becomes less binding, resulting in a decreased incentive to accumulate foreign assets. When there is a negative shock, by contrast, GDP falls, and the representative household must increase the trade balance to avoid possible binding borrowing constraints. (C) 2013 Elsevier B.V. All rights reserved.