IDEAS home Printed from https://ideas.repec.org/h/pal/intecp/978-1-4039-4385-9_10.html
   My bibliography  Save this book chapter

External Shocks, Relative Prices and Sectoral Reallocation in a Small Open Economy: Evidence from Mexico

In: Latin American Economic Crises

Author

Listed:
  • Talan İşcan

Abstract

In a small open economy external disturbances such as currency devaluations and terms-of-trade shocks seem to have a significant impact on real output. For instance, the Mexican peso crisis of December 1994 resulted in a severe economic recession: in the first quarter 1995, the Mexican gross domestic product (GDP) declined at a rate equal to 10 per cent a year. In 1997, currency devaluations in various Asian countries reduced real aggregate output. These observations appear to agree with the empirical evidence on the recessionary consequences of devaluation in developing countries noted by Edwards (1989) and Yotopoulos (1996); Mendoza (1995) found that relatively large terms-of-trade disturbances had a significant impact on aggregate output and investment levels in developing countries.

Suggested Citation

  • Talan İşcan, 2004. "External Shocks, Relative Prices and Sectoral Reallocation in a Small Open Economy: Evidence from Mexico," International Economic Association Series, in: Enrique Bour & Daniel Heymann & Fernando Navajas (ed.), Latin American Economic Crises, chapter 10, pages 167-186, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-4039-4385-9_10
    DOI: 10.1057/9781403943859_10
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:intecp:978-1-4039-4385-9_10. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.