Kaneda, Mitsuhiro; Mehrez, Gil - EconWPA - 1998
This paper argues that seasonal fluctuations in international trade are large and have non-trivial effects on a country … employment, output, and consumption. One result is that if price fluctuations increase under free trade, the traded good sector … shrinks and the non- traded good sector expands. Increased trade volume can decrease fluctuations in domestic production of …