The J-Curve: Evidence from commodity trade between Canada and the U.S.

Bahmani‐Oskooee, Mohsen; Bolhasani, Marzieh

doi:10.1007/s12197-007-9024-0

Cited by 26 publications

(11 citation statements)

References 16 publications

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“…The same is true in the long run. While Bahmani‐Oskooee and Wang (2008) found 34 of 88 industries reacting significantly to the real yuan–dollar rate in the long run (i.e. 34 per cent), we found 58 of 108 industries (i.e.…”

Section: The Resultscontrasting

confidence: 66%

“…How are these results compared with those of Bahmani‐Oskooee and Wang (2008) who used a similar model and method and investigated sensitivity of the China–USA trade at commodity level to changes in the real value of the yuan–dollar rate? Due to lack of continuous time‐series data, Bahmani‐Oskooee and Wang (2008) included only 88 industries in their analysis. In the short run while they found 49 of 88 industries reacting to exchange rate changes (i.e.…”

Section: The Resultsmentioning

confidence: 99%

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Is There Evidence of the J‐curve in Commodity Trade Between the Usa and Hong Kong?*

Bahmani‐Oskooee

2012

The Manchester School

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In this paper, when we apply the technique to the bilateral trade balance between the USA and Hong Kong, we find neither short-run nor longrun effects. Suspecting that this could be due to aggregation, we disaggregate the trade data between the two countries by commodity and apply the same method. While we find short-run negative effects in the majority of industries, positive long-run effects are observed in 58 of 108 industries, supporting the J-Curve.

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Section: The Resultscontrasting

confidence: 66%

Section: The Resultsmentioning

confidence: 99%

Is There Evidence of the J‐curve in Commodity Trade Between the Usa and Hong Kong?*

Bahmani‐Oskooee

2012

The Manchester School

Self Cite

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“…Bahmani-Oskooee and Bolhasani (2008), for example, find that for a set of 152 trade flows between the USA and Canada, half have long-run effects, and most have some short-run effects. Likewise, Bahmani-Oskooee and Wang (2007) study 108 industry trade flows between the USA and Australia, finding that 68 have significant short-run coefficients and 35 have positive long-run effects.…”

Section: Iii2 Papers Using Industry Datamentioning

confidence: 99%

The J‐ and S‐curves: a survey of the recent literature

Bahmani‐Oskooee

Hegerty

2010

Journal of Economic Studies

153

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -Since the introduction of the concepts of the J-and S-curves, many researchers have tried to verify their validity empirically. This paper aims to review the related papers and to offer direction for future research. Design/methodology/approach -This is a review paper. As such, no method is employed here. Rather, the methodologies used by others to test the J-and S-curves are explained and reviewed. Findings -No new findings are offered since this is a review paper. Practical implications -The J-and S-curves show whether currency depreciation worsens the trade balance first before improving it. Since the majority of studies are country-specific, policymakers could benefit by learning whether currency depreciation will be effective in improving the trade balance. Originality/value -This is a literature review paper and its originality is in terms of collecting the literature together and presenting it in one single paper.

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“…1 See Bahmani- Oskooee and Bolhasani (2008) and Boyd, Caporale and Smith (2001) for empirical evidence of a J-curve e¤ect and evidence that the Marshall-Lerner condition holds in the long run but may not hold in the short run. See also Rose (1991) for evidence that the Marshall-Lerner condition does not hold and that the trade balance is largely independent of movements in the real exchange rate in at least the …rst two years following a change in the exchange rate.…”

Section: Introductionmentioning

confidence: 99%

Distribution capital and the short- and long-run import demand elasticity

Crucini

Davis

2016

Journal of International Economics

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International business-cycle models assume that home and foreign goods are poor substitutes. International trade models assume they are close substitutes. This paper constructs a model where this discrepancy is due to frictions in distribution. Imports need to be combined with a local non-traded input, distribution capital, which is slow to adjust. As a result, imported and domestic goods appear as poor substitutes in the short run. In the long run this non-traded input can be reallocated, and quantities can shift following a change in relative prices. Thus the observed substitutability between home and foreign goods gets larger as time passes.

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The J-Curve: Evidence from commodity trade between Canada and the U.S.

Abstract: J-Curve, Bounds testing approach, Industry data, Canada, U.S., F31,

Cited by 26 publications

References 16 publications

Is There Evidence of the J‐curve in Commodity Trade Between the Usa and Hong Kong?*

Is There Evidence of the J‐curve in Commodity Trade Between the Usa and Hong Kong?*

The J‐ and S‐curves: a survey of the recent literature

Distribution capital and the short- and long-run import demand elasticity

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