01728cas a2200241 a 4500 AALejournalIMF008422 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451854749 1018-5941 BD-DhAAL BD-DhAAL Li, Xiangming. Trade Liberalization and Real Exchange Rate Movement / Xiangming Li. Washington, D.C. : International Monetary Fund, 2003. 1 online resource (38 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 Although theory suggests that the real exchange rate should depreciate after a credible trade liberalization but could appreciate temporarily with a noncredible one, little empirical evidence exists. Unlike existing studies that use either indirect tests or unreliable openness measures, this paper uses an event study based on carefully documented trade liberalization in 45 countries. The result shows that real exchange rates depreciate after countries open their economies to trade. In countries with multiple liberalization episodes, however, real exchange rates appreciate during early episodes, suggesting that partial or noncredible trade liberalizations are associated with real appreciation. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2003/124 Full text available on IMF http://elibrary.imf.org/view/journals/001/2003/124/001.2003.issue-124-en.xml IMF e-Library