@article{Sokolova:332790,
      recid = {332790},
      author = {Sokolova, Maria V.},
      title = {Exchange Rates, International Trade and Growth:  Re-Evaluation of Undervaluation},
      address = {2016},
      year = {2016},
      note = {Presented at the 19th Annual Conference on Global Economic  Analysis, Washington DC, USA},
      abstract = {This paper shows that a regional bias resulting from trade  integration alters the transmission of a country's monetary  policy by shifting the burden of the exchange rate  adjustment towards the less integrated trading partners.    I first develop a simple model which illustrates how a  concentration of trade flows among regional trading  partners affects the sensitivity of the trade balance to  the terms-of-trade.  In particular, the trade balance  becomes less sensitive to the terms-of-trade vis-à-vis  regional partners and more sensitive to the terms-of-trade  vis-à-vis the other country.  I then test the implication  of the model using a panel of 133 countries between 1985 -  2010 that includes information on Regional Trade Agreements  (RTA). I find that movements in the terms-of-trade  vis-à-vis non-RTA members affect a country's trade balance,  while movements vis-à-vis RTA partners do not.},
      url = {http://ageconsearch.umn.edu/record/332790},
}