<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The terms-of-trade shocks are not main source of business cycles in three post-communist countries (i.e., Slovakia, the Czech Republic, and Croatia). The zero or negative reactions of the trade balance in terms-of-trade positive shocks in the countries exhibit the Obstfeld-Svensson-Razin effect, according to which the Harberger-Laursen-Metzler positive effect on terms-of-trade indicates that the smaller the trade balance, the more persistent the terms-of-trade shock is. The conclusions come from the structural vector autoregressive analysis of the cyclical components of terms-of-trade, trade balance, output, consumption, and investment in three post-communist countries.</p></abstract>

The terms-of-trade shocks are not main source of business cycles in three post-communist countries (i.e., Slovakia, the Czech Republic, and Croatia). The zero or negative reactions of the trade balance in terms-of-trade positive shocks in the countries exhibit the Obstfeld-Svensson-Razin effect, according to which the Harberger-Laursen-Metzler positive effect on terms-of-trade indicates that the smaller the trade balance, the more persistent the terms-of-trade shock is. The conclusions come from the structural vector autoregressive analysis of the cyclical components of terms-of-trade, trade balance, output, consumption, and investment in three post-communist countries.

Impact of Terms-of-Trade on Slovakia, the Czech Republic, and Croatia in the Short Run

Department of Operations Research and Econometrics, University of Economics Bratislava,

Naše gospodarstvo/Our economy

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The terms-of-trade shocks are not main source of business cycles in three post-communist countries (i.e., Slovakia, the Czech Republic, and Croatia). The zero...

Impact of Terms-of-Trade on Slovakia, the Czech Republic, and Croatia in the Short Run

Data publikacji: 30 mar 2017

Zakres stron: 3 - 13

Otrzymano: 01 paź 2016

Przyjęty: 01 sty 2017

DOI: https://doi.org/10.1515/ngoe-2017-0001

Słowa kluczowe
innovation, terms-of-trade, business cycle, Slovak economy, Czech economy, Croatian economy, trade balance

© 2017 Karol Szomolányi et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Impact of Terms-of-Trade on Slovakia, the Czech Republic, and Croatia in the Short Run

Data publikacji: 30 mar 2017

Zakres stron: 3 - 13

Otrzymano: 01 paź 2016

Przyjęty: 01 sty 2017

DOI: https://doi.org/10.1515/ngoe-2017-0001

Słowa kluczoweinnovation, terms-of-trade, business cycle, Slovak economy, Czech economy, Croatian economy, trade balance

© 2017 Karol Szomolányi et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Słowa kluczowe
innovation, terms-of-trade, business cycle, Slovak economy, Czech economy, Croatian economy, trade balance