01805cas a2200253 a 4500 AALejournalIMF003653 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451847192 1018-5941 BD-DhAAL BD-DhAAL Giovannetti, Giorgia. Hysteresis in Exports / Giorgia Giovannetti, Hossein Samiei. Washington, D.C. : International Monetary Fund, 1995. 1 online resource (20 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper presents an empirical examination of the importance of hysteresis in international trade. An econometric model of export determination is developed where the presence of sunk costs causes discontinuous behavior and hysteresis so that individual exporters' decision to stay in or out of the market depends on the current value of the exchange rate as well as its past history. The aggregate level of exports is then determined by the proportion of exporters that stay in the market. The resulting non-linear model is estimated using data on manufacturing exports for the United States, Germany, and Japan. The paper finds strong evidence in favor of the presence of pricing-to-market and hysteresis only in the case of Japanese exports. Mode of access: Internet Samiei, Hossein. IMF Working Papers; Working Paper ; No. 1995/052 Full text available on IMF http://elibrary.imf.org/view/journals/001/1995/052/001.1995.issue-052-en.xml IMF e-Library