Disproportionate gains from trade could be driven by heterogeneity in the traded goods; thus, income effects estimate of trade should consider levels of technological sophistication of the traded goods and their transmission channels, not the countries' aggregate trade levels. This thesis finds positive income effects in high-tech products to be approximately three times the effect of overall trade, while trade in low-tech manufactured goods and agricultural products has negative income effects. Furthermore. by constructing novel exchange rate indexes and instrumental variables to address the endogeneity of exchange rates, this thesis finds strong positive output effects of real exchange rate depreciations.
|Qualification||Doctor of Philosophy|
|Award date||12 Sept 2022|
|Publication status||Unpublished - 2022|