Bilateral J-Curve between India and Her Trading Partners: A Quantitative Perspective

Dash, Aruna Kumar

doi:10.1016/s0313-5926(13)50034-8

Cited by 17 publications

(9 citation statements)

References 38 publications

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“…Various papers investigated whether there is a so‐called “J‐curve,” with devaluations leading to a short‐run deterioration of the TB but a long‐run improvement (see Bahmani‐Oskooee, ; Rahman, Mustafa, & Burckel, ; Himarios, ; Rose & Yellen, ; Briguglio, ; Noland, ; Rose, ; Berument & Dincer, ), with mixed results. Most studies use bilateral aggregate data (see, e.g., Boyd, Caporale, & Smith, ; Lal & Lowinger, ; Onafuwora, ; McDaniel & Agama, ; Fullerton & Sprinkle, ; Narayan, ; Bahmani‐Oskooee & Hegerty, ; Dash, ; Costamagna, ), again providing mixed evidence. However, as pointed out by Rose and Yellen (), there might be an “aggregation bias” affecting those results.…”

Section: Literature Reviewmentioning

confidence: 85%

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

Caporale

Costamagna²,

Rossini

2017

Review Development Economics

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This paper investigates whether there is an S-curve in Colombia using bilateral and disaggregated quarterly data for the period 1991 to 2014. More precisely, the shortrun effects of a depreciation on the trade balance (TB) are analyzed in 27 industries covered by the Pacific Alliance Group free trade agreement. The S-curve found in sectors representing 30 percent of total industrial production suggests that in these cases competitive devaluations have a positive effect on the TB in the short run. Our findings have important policy implications: since only large competitive devaluations can restore TB equilibrium, industrial restructuring would appear to be a more sensible strategy, though this cannot be achieved in the short run and is instead a medium-to long-term goal.

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Section: Literature Reviewmentioning

confidence: 85%

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

Caporale

Costamagna²,

Rossini

2017

Review Development Economics

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“…There are many previous studies [21][22][23] that have applied different panel data regressors to find the impact of the economic determinants on bilateral trade intensity. The current regression of 24 years is enough to initiate dynamic regulations and actions pertaining to the trade intensity of bioenergy outputs in the EU countries, in line with what has been completed in earlier studies.…”

Section: Theoretical Review Of Trade Intensitymentioning

confidence: 99%

The Economic Determinants of Bioenergy Trade Intensity in the EU-28: A Co-Integration Approach

Alsaleh

Abdul‐Rahim

2018

Sustainability

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This paper examines the dynamic effect of the economic determinants on bilateral trade intensity of the European Union (EU) region's bioenergy industry outputs. The authors adopt the panel co-integration model approach to estimate annual trade intensity data of the EU-28 countries' bioenergy industry outputs from 1990 to 2013. This study investigated the long-term influence of the rate of real exchange, gross domestic product (GDP), and export price on the trade intensity of bioenergy industry applying fully modified oriented least square (FMOLS), dummy oriented least square (DOLS), and pooled mean group (PMG) models. In the current study, the findings boost the empirical validity of the panel co-integration model through FMOLS, indicating that depreciation has improved the trade intensity. This study has further investigated, through the causality test, a distinct set of countries. FMOLS estimation does find proof of the long run improvement of trade intensity. Thus, the result shows that the gross domestic product (GDP) and the real exchange rate have a positive and noteworthy influence on the EU-28 region trade intensity of the bioenergy industry. Moreover, the export price affects negatively and significantly the trade intensity of the bioenergy industry in the EU-28 countries.

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“…Most studies use bilateral aggregate data (see, e.g., Boyd et al, 2001;Lal, and Lowinger, 2002;Onafuwora, 2003;McDaniel, and Agama, 2003;Fullerton and Sprinkle, 2005;Bahmani-Oskooee et al, 2006;Narayan, 2006;Bahmani-Oskooee, and Hegerty, 2011;Dash, 2013;Costamagna, 2014), again providing mixed evidence.…”

Section: Literature Reviewmentioning

confidence: 99%

Competitive Devaluations in Commodity-Based Economies: Colombia and the Pacific Alliance Group

Caporale

Costamagna²,

Rossini

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper investigates whether there is an S-Curve in Colombia using bilateral and disaggregated quarterly data for the period 1991-2014. More precisely, the short-run effects of a depreciation on the TB are analysed in 27 industries covered by the PAG Free Trade Agreement. The S-Curve found in sectors representing 30% of total industrial production suggests that in these cases competitive devaluations have a positive effect on the TB in the short run. However, the regression analysis using both OLS and FE methods shows that sizable ones are needed to produce the desired effects on trade flows. Our findings have important policy implications: since only large competitive devaluations can restore TB equilibrium, industrial restructuring would appear to be a more sensible strategy, though this cannot be achieved in the short run and is instead a medium/long-term goal. Terms of use: Documents inJEL-Codes: F100, F400, O100.

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Bilateral J-Curve between India and Her Trading Partners: A Quantitative Perspective

Cited by 17 publications

References 38 publications

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

Competitive devaluations in commodity‐based economies: Colombia and the Pacific Alliance Group

The Economic Determinants of Bioenergy Trade Intensity in the EU-28: A Co-Integration Approach

Competitive Devaluations in Commodity-Based Economies: Colombia and the Pacific Alliance Group

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