The present study examines the Brazilian economy in the light of the export-led growth (ELG) hypothesis, in order to examine if this hypothesis is valid for periods in which commodities occupy a significant part of exports, for this reason, for the period known as the “commodity boom”. In...

Bangladesh is a lower middle income country that has followed an export-led growth strategy to develop its economy over the years which signifies the importance of Terms of Trade (TOT) movements a crucial macroeconomic tool that can dictate its volume of trade. However, despite the fact that a...

We incorporate terms-of-trade externality into a small open economy featuring an incomplete market, sterilized intervention, and capital controls as in Chang et al. (2015), and we highlight the central banks reaction to exchange rate movement. Our calibrated model using data from China shows...