01735cas a2200265 a 4500 AALejournalIMF006534 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455201259 1018-5941 BD-DhAAL BD-DhAAL Yi, Kei-Mu. Demand Spillovers and the Collapse of Trade in the Global Recession / Kei-Mu Yi, Rudolfs Bems, Robert Johnson. Washington, D.C. : International Monetary Fund, 2010. 1 online resource (45 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 uses a global input-output framework to quantify US and EU demand spillovers and the elasticity of world trade to GDP during the global recession of 2008-2009. We find that 20-30 percent of the decline in the US and EU demand was borne by foreign countries, with NAFTA, Emerging Europe, and Asia hit hardest. Allowing demand to change in all countries simultaneously, our framework delivers an elasticity of world trade to GDP of nearly 3. Thus, demand alone can account for 70 percent of the trade collapse. Large changes in demand for durables play an important role in driving these results. Mode of access: Internet Bems, Rudolfs. Johnson, Robert. IMF Working Papers; Working Paper ; No. 2010/142 Full text available on IMF http://elibrary.imf.org/view/journals/001/2010/142/001.2010.issue-142-en.xml IMF e-Library