“…Numerous empirical investigations of how exchange rate changes affect the trade balance (or the export‐to‐import ratio) in the long run and short run have been done for industrialized economies (see, for example, Rose and Yellen, 1989, and Koray and McMillan, 1999, for the US; Gupta‐Kapoor and Ramakrishnan, 1999, and Lal and Lowinger, 2001, for Japan; Hacker and Hatemi‐J, 2003, for small North European economies; and Boyd, Caporale and Smith, 2001; Bahmani‐Oskooee and Alse, 1994; and Bayoumi, 1999, for various industrialized economies). There are also many studies on the J‐curve dealing with East Asian ‘Tiger’ economies (see, for example, Hsing and Savvides, 1996, on Korea and Taiwan; Wilson and Tat, 2001, on Singapore; and Lal and Lowinger, 2001, on seven East Asian economies). Rose (1990) and Bahmani‐Oskooee and Alse (1994) have also examined the J‐curve phenomenon for various developing economies.…”