Real Exchange Rates and the Balance of Trade: Does the J-curve Effect Really Hold?
Küçük Resim Yok
Tarih
2019
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
In this paper, we re-examine the relationship between trade flows, real effective exchange rates, and incomes by using the bilateral trade flows of 33 countries that form more than two-thirds of total world trade. For each country, we consider the bilateral trade flows of the country under consideration vis-a-vis all other countries. The analysis reveals the fact that for most of the countries, a real depreciation of the home currency has favorable effects on the home country's trade balance in the long run. This long-run effect manifests itself in the short run for a small number of countries, indicating the fact that satisfying the Marshall-Lerner condition in the short run is more difficult. However, there is no evidence for the J-curve phenomenon, which suggests an initial deterioration in the trade balance in the short run following a depreciation.
Açıklama
Anahtar Kelimeler
Competitive Devaluation, Marshall-Lerner Condition, J-Curve, Panel Data, Panel Data Cointegration, Cce Estimator, Error-Correction, Commodity Trade, Cointegration, Us, Dependence, Panels, Tests
Kaynak
Open Economies Review
WoS Q Değeri
Q3
Scopus Q Değeri
Q3
Cilt
30
Sayı
2
