Bilateral J-curve between India and her trading partners

Arora, Swarnjit S.; Bahmani‐Oskooee, Mohsen; Goswami, Gour Gobinda

doi:10.1080/0003684032000102172

Cited by 83 publications

(45 citation statements)

References 12 publications

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“…The proposed trade balance model for Pakistan and its trade competitors ( = 1, 2), I used the same model as were used by different researchers in different times, including [10] and [6], is given in the Equation (1):…”

Section: The Methodologymentioning

confidence: 99%

Empirical Evidence on the J-Curve Between Pakistan and Selected South Asian Trade Partners

Khalid¹

2017

EBM

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Abstract:The earlier researches investigated the J-curve hypothesis along with the Marshall-Lerner condition in Pakistan used the OLS, 2SLS, 3SLS, and Instrumental Variables (IV) techniques. The estimates obtained from these studies may suffer from spurious regression problems as the models were estimated without incorporating the co-integrating property of the variables. Hence, the objective of this work is to analyze the trade balance model using relatively the new co-integration approach, the ARDL model. The J-curve phenomenon is tested for Pakistan's trade with her selected South Asian trade partners, including Republic of India and Democratic Socialist Republic of Sri Lanka using the annual time series data over the 1975-2013 periods. After empirical analysis, it was observed that the J-curve occurrence is rejected in favor of Pakistan with its trading partners. This study concludes that depreciation of Pakistani Rupee has a constructive result on Pakistan's trade with these trade partners.

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Section: The Methodologymentioning

confidence: 99%

Empirical Evidence on the J-Curve Between Pakistan and Selected South Asian Trade Partners

Khalid¹

2017

EBM

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“…Bahmani-Oskooee and Ratha (2004a) presents a very comprehensive survey on the J-curve literature for the period of . The recent examples of the J-curve studies include Arora, et al (2003), Onafowora (2003), Bahmani-Oskooee and Ratha (2004b), Bahmani-Oskooee et al (2005), Hacker andHatemi (2004), Narayan (2004), Narayan and Narayan (2004), Moura and Da Silva (2005), Bahmani-Oskooee et al (2006a), andBahmani-Oskooee andWang (2006b). Despite the well established theoretical the relationship between the exchange rate and the trade balance, the empirical results for this relationship are still inconclusive.…”

Section: Introductionmentioning

confidence: 99%

The bilateral J-curve: Turkey versus her 13 trading partners

Halıcıoğlu

2008

Journal of Asian Economics

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This study empirically analyses bilateral J-curve dynamics of Turkey with her thirteen trading partners using quarterly time series data over the period . Previous studies on the J-curve of Turkey are based on only aggregate data and they reveal mixed results. Short and long-run impacts of the depreciation of Turkish lira on the trade balance between Turkey and her thirteen trading partners are estimated from the bound testing approach and error correction modeling. The empirical results indicate that whilst there is no J-curve effect in the short-run, but in the long-run, the real depreciation of the Turkish lira has positive impact on Turkey's trade balance in couple of countries. The stability of the long-run trade balance equations is also checked through CUSUM and CUSUMSQ stability tests.

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“…This is expected to improve the trade balance. Nevertheless, the impact of exchange rate devaluation on the balance of trade is not instantaneous (Arora et al 2003). It is widely believed that currency depreciation worsens the trade balance in the short-run, but improves it in the long-run.…”

Section: Introductionmentioning

confidence: 99%