Research Discussion Paper – RDP 9705 The Response of the Current Account to Terms of Trade Shocks: A Panel-data Study

Contents

• Introduction
• Theoretical Framework
• Counting Episodes
• Panel-data Regressions
• Conclusion
• Appendix A: Further Results
• Appendix B: Data
• References

I would like to thank Rudi Dornbusch, Jaume Ventura, Jushan Bai, Whitney Newey, Richard Eckaus and Philip Lowe for their help and guidance. This work has benefited from many helpful comments from the participants of the MIT International Economics and Macroeconomics Lunches. I am grateful to Aart Kray and Jaume Ventura for kindly providing me with productivity data. The views expressed are those of the author and should not be attributed to the Reserve Bank of Australia.