Openness and Inflation Revisited
International Research Journal of Finance and Economics, Vol. 37, pp. 40-45, 2010
Posted: 22 Apr 2011
Abstract
This paper investigates the relationship between trade openness and inflation for panel data from 1970 to 2007. The results show a negative effect of trade openness on inflation when inflation is higher but no effect when inflation is lower. The negative relationship is stronger along with the inflation. The evidences are robust to controlling for exchange rate regime and for indebted countries in the 1980s debt crisis.
Keywords: Debt crisis, Inflation, Panel data, Quantile regression, Trade openness
JEL Classification: C23, E31, F41
Suggested Citation: Suggested Citation
Lin, Hsin-Yi, Openness and Inflation Revisited. International Research Journal of Finance and Economics, Vol. 37, pp. 40-45, 2010, Available at SSRN: https://ssrn.com/abstract=1815142
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