Test of the J-curve for the DR-CAFTA countries and policy implications

Hsing, Yu

doi:10.1016/j.ribaf.2008.11.005

Cited by 5 publications

(1 citation statement)

References 28 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…However, Shahbaz et al (2012), Cao-Alvira (2014), andBaek (2013), Narayan (2006), Bahmani-Oskooee and Wang (2006), conclude for the J-curve hypothesis there is not much support found. The long-run currency depreciation improves the TB and Bahmani-Oskooee and Zhang (2014), Igue and Ogunleye (2014), Iqbal et al (2015), Hsing (2009) andOgutu (2014) argued about it. Whereas, Wang et al(2012) and Datta (2014) found there is no significant impact of depreciation on the TB, therefore, the Marshall-Lerner condition is not satisfied.…”

Section: Literature Reviewmentioning

confidence: 99%

The Relationship between RMB Exchange Rate and Chinese Trade Balance: Evidence from a Bootstrap Rolling Window Approach

Masih¹,

Li²,

Pervaiz³

2018

IJEF

View full text Add to dashboard Cite

This study inspects the fundamental relationship between the exchange rate and the trade balance in China. The outcome shows that the real effective exchange rate and trade balance in China has no causal relationship. Though, seeing structural changes in two series, we got the result those both long-run and short-run associations using full-sample data are wobbly, which proposes that the full-sample causation tests can"t be relied upon. Then, using time-varying rolling window method to reexamine the dynamic fundamental relationship. The results show that real effective exchange rate has both negative and positive impacts on the trade balance in several sub-periods, and in turn, trade balance has same impact on real effective exchange rate for China. These findings provide no support for the existence of J-curve effect and Marshall-Lerner Condition in case of China. This study shows that it is impossible to resolve China"s trade deficit, depending only on the movement of RMB"s exchange rate.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

The Relationship between RMB Exchange Rate and Chinese Trade Balance: Evidence from a Bootstrap Rolling Window Approach

Masih¹,

Li²,

Pervaiz³

2018

IJEF

View full text Add to dashboard Cite

show abstract

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

Dash

2013

Economic Analysis and Policy

View full text Add to dashboard Cite

Time Series Investigation of J-Curve of Pakistan with Saudi Arabia

Suleman¹,

Cheema²,

Riaz³

et al. 2014

JFE

View full text Add to dashboard Cite

This study is focused in analyzing the existence of J-curve phenomenon of Pakistan with Saudi Arabia by using the time series data from 1973 to 2010. Order of integration of the variables is mix as some variables are I(0) and some are I(1). So, ARDL approach to cointegration is applied to find out the relationship between exchange rate and trade balance. Results in both models do not support the existence of J-curve. The conclusion which is drawn from these models is that depreciation is not useful tool in improving trade balance of Pakistan with Saudi Arabia. Pakistan has to fine some alternative way of improving trade balance with these countries.

show abstract

Test of the J-curve for the DR-CAFTA countries and policy implications

Cited by 5 publications

References 28 publications

The Relationship between RMB Exchange Rate and Chinese Trade Balance: Evidence from a Bootstrap Rolling Window Approach

The Relationship between RMB Exchange Rate and Chinese Trade Balance: Evidence from a Bootstrap Rolling Window Approach

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

Time Series Investigation of J-Curve of Pakistan with Saudi Arabia

Contact Info

Product

Resources

About