01729cas a2200253 a 4500 AALejournalIMF005143 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451870046 1018-5941 BD-DhAAL BD-DhAAL Levchenko, Andrei. Trade Openness and Volatility / Andrei Levchenko, Julian Di Giovanni. Washington, D.C. : International Monetary Fund, 2008. 1 online resource (60 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 examines the mechanisms through which output volatility is related to trade openness using an industry-level panel dataset of manufacturing production and trade. The main results are threefold. First, sectors more open to international trade are more volatile. Second, trade is accompanied by increased specialization. Third, sectors that are more open are less correlated with the rest of the economy. The point estimates indicate that each of the three effects has an appreciable impact on aggregate volatility. Added together they imply that the relationship between trade openness and overall volatility is positive and economically significant. Mode of access: Internet Di Giovanni, Julian. IMF Working Papers; Working Paper ; No. 2008/146 Full text available on IMF http://elibrary.imf.org/view/journals/001/2008/146/001.2008.issue-146-en.xml IMF e-Library