Trade Openness and Volatility



Table 10. The Impact of Changes in Openness Evaluated at Different Percentiles of the Data

Effect

Sector Volatility

Comovement

Specialization

Total

Baseline

0.0009

-0.0003

0.0011

0.0016

Sector Volatility (σi2)
25th pctile

0.0004

-0.0002

0.0004

0.0006

75th pctile

0.0013

-0.0004

0.0018

0.0027

Ratio 75th/25th

2.90

1.95

4.44

4.22

Comovement (ρi,A-i)
25th pctile

0.0008

-0.0003

0.0012

0.0016

75th pctile

0.0010

-0.0003

0.0010

0.0017

Ratio 75th/25th

1.29

1.00

0.87

1.05

Specialization (h)
25th pctile

0.0007

-0.0004

0.0007

0.0011

75th pctile

0.0009

-0.0003

0.0011

0.0017

Ratio 75th/25th

1.28

0.95

1.60

1.60

Notes: This table reports the estimated change in aggregate volatility in absolute terms (∆σA2 ), while evaluating σ2 ,
ρ, and h at the 25th and 75th percentiles of their respective distributions. It also reports the ratio of the two. The
trade opening used in this table is equivalent to moving from the 25
th to 75th percentile of trade openness in the
sample.

31



More intriguing information

1. Towards a framework for critical citizenship education
2. Skills, Partnerships and Tenancy in Sri Lankan Rice Farms
3. Response speeds of direct and securitized real estate to shocks in the fundamentals
4. The name is absent
5. FUTURE TRADE RESEARCH AREAS THAT MATTER TO DEVELOPING COUNTRY POLICYMAKERS
6. EU Preferential Partners in Search of New Policy Strategies for Agriculture: The Case of Citrus Sector in Trinidad and Tobago
7. The Role of Land Retirement Programs for Management of Water Resources
8. Micro-strategies of Contextualization Cross-national Transfer of Socially Responsible Investment
9. The name is absent
10. Correlates of Alcoholic Blackout Experience