Yazgan, M. EgeOzturk, Serda Selin2024-07-182024-07-1820190923-79921573-708Xhttps://doi.org/10.1007/s11079-018-9510-3https://hdl.handle.net/11411/7205In 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.eninfo:eu-repo/semantics/closedAccessCompetitive DevaluationMarshall-Lerner ConditionJ-CurvePanel DataPanel Data CointegrationCce EstimatorError-CorrectionCommodity TradeCointegrationUsDependencePanelsTestsArticle2-s2.0-8505325855010.1007/s11079-018-9510-33732Q334330Q3WOS:000463589900006