Buy custom Correlation Between Trade Balance and Its Determinants
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| Topic: |
Business
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| Number of pages / Number of words: |
19 / 5143 |
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The inconvenience comes from the impossibility to quantify all the comprehensive trade policies (tariffs, quotas, voluntary export restraints, local content requirements, etc.) that a government imposes in a single figure in a period of time. By this consideration, we will not include trade policies in our analysis and choose to have four independent variables, instead of five...
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By this consideration, we will not include trade policies in our analysis and choose to have four independent variables, instead of five.
If the theory perfectly applies, we can expect a very strong correlation and very few errors between trade balance and its four determinants which are inflation rates, exchange rates, domestic country’s income and foreign country’s income (please note that trade policies factor is no longer listed due to the reason above)...
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