The U.S.‐Canadian trade and exchange rate uncertainty: Asymmetric evidence from commodity trade

Abstract

Mohsen Bahmani-Oskooee: Valuable comments of two anonymous referees are greatly appreciated. Any remaining error, however is our own.

U.S.‐South America trade and the J‐Curve: An asymmetric analysis

“…Clearly, incorporating nonlinear adjustment of the real bilateral exchange rate has proven to be an important factor in yielding relatively more support for the J‐curve effect except in the case of Venezuela. Following Bahmani‐Oskooee and Harvey (2022, p. 859), if we consider the linear and nonlinear models complement rather than substitute, the J‐curve effect is supported in the U.S. trade with all partners except Ecuador and Paraguay. Our findings imply that most countries in South America can improve their trade balance with the United States by relying upon currency devaluation or depreciation against the U.S. dollar, provided that the policy is supplemented by appropriate monetary or fiscal policy to combat inflationary effects of a devaluation or depreciation.…”