Dynamics of the yen-dollar real exchange rate and the US-Japan real trade balance

Mustafa, Muhammad; Burckel, Daryl V.

doi:10.1080/000368497326868

Cited by 40 publications

(23 citation statements)

References 10 publications

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“…The list includes Briguglio (1989), Tegene (1991), Buluswar et al (1996), Rahman et al (1997), Nachane and Ranade (1998), Miljkovic (2000), Bahmani-Oskooee (2001), Kyereme (2002) and Berument and Dincer (2005). 2 For a comprehensive study and estimates of the Marshall-Lerner condition see Bahmani-Oskooee and Niroomand (1998).…”

Section: The Models and The Methodsmentioning

confidence: 99%

How sensitive are Malaysia's bilateral trade flows to depreciation?

Bahmani‐Oskooee

Harvey

2006

Applied Economics

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In an attempt to assess the impact of currency depreciation on the trade balance, recent studies are employing disaggregated trade data to avoid aggregation bias. However, since import and export prices are not available at disaggregated level, recent studies are using export and import values rather than their volumes so that they can establish direct relation between inpayments and the exchange rate as well as between outpayments and the exchange rate. This study explores the experience of Malaysia. Bilateral inpayments and outpayments models are estimated between Malaysia and her 14 trading partners using quarterly data and bound testing approach to cointegration. The results show that while real depreciation of the ringgit has short-run effects, in the long-run it increases Malaysia's inpayments from only five trading partners.

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Section: The Models and The Methodsmentioning

confidence: 99%

How sensitive are Malaysia's bilateral trade flows to depreciation?

Bahmani‐Oskooee

Harvey

2006

Applied Economics

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“…These studies have found a significant relationship between the trade balance and the EXR. On the other hand, studies by Greenwood (1984), Mahdavi & Sohrabian (1993), Rahman et al (1997) and Duasa (2007) have found rather weak empirical evidence on the relationship between the EXR and the X and M flows. Based on these empirical findings, inconclusive evidence exists as to whether the EXR are statistically significant in determining the X and M flows.…”

Section: Theoretical Framework and Methodologymentioning

confidence: 99%

An Empirical Investigation of Trade Flows Between Australia and its Major Trading Partners

Belicka¹,

Saleh²

2015

AABFJ

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This study introduces Net Export (NX) models to examine the determinants of the trade flows between Australia and eight selected trading partner (TP) countries (China, France, Germany, Malaysia, Singapore, Thailand, United Kingdom, United States of America) in four selected Trade Deficit (TD) categories (Pharmaceutical Products; Nuclear Reactors, Boilers, Machinery and Mechanical Appliances; Electrical Machinery and Equipment; Sound Recorders and Producers, and Vehicles Other Than Railway or Tramway Rolling-Stock). A total of 29 NX models are estimated, which are based on both the monetary and Quantity (QTY) values. Findings in this study suggest that macroeconomic variables such as money supply, interest rates and savings rates have no-significant effect in the determination of the NX levels in the selected categories. This highlights that monetary policy cannot influence the NX levels in the selected TD categories in Australia. This study also identifies some policy implications which arise from this paper. A total of 29 NX models are estimated, which are based on both the monetary and Quantity (QTY) values. Findings in this study suggest that macroeconomic variables such as money supply, interest rates and savings rates have no-significant effect in the determination of the NX levels in the selected categories. This highlights that monetary policy cannot influence the NX levels in the selected TD categories in Australia. This study also identifies some policy implications which arise from this paper.

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“…Various papers investigated whether there is a so-called "J-curve", with devaluations leading to a short-run deterioration of the TB but a long-run improvement (see Bahmani-Oskooee, 1985;Rahman, Mustafa, and Burckel, 1997;Himarios, 1989;Rose and Yellen, 1989;Briguglio, 1989;Noland, 1989;Rose, 1990;Berument, 2005), with mixed results. Most studies use bilateral aggregate data (see, e.g., Boyd et al, 2001;Lal, and Lowinger, 2002;Onafuwora, 2003;McDaniel, and Agama, 2003;Fullerton and Sprinkle, 2005;Bahmani-Oskooee et al, 2006;Narayan, 2006;Bahmani-Oskooee, and Hegerty, 2011;Dash, 2013;Costamagna, 2014), again providing mixed evidence.…”

Section: Literature Reviewmentioning

confidence: 99%

Competitive Devaluations in Commodity-Based Economies: Colombia and the Pacific Alliance Group

Caporale

Costamagna²,

Rossini

2016

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. This paper investigates whether there is an S-Curve in Colombia using bilateral and disaggregated quarterly data for the period 1991-2014. More precisely, the short-run effects of a depreciation on the TB are analysed in 27 industries covered by the PAG Free Trade Agreement. The S-Curve found in sectors representing 30% of total industrial production suggests that in these cases competitive devaluations have a positive effect on the TB in the short run. However, the regression analysis using both OLS and FE methods shows that sizable ones are needed to produce the desired effects on trade flows. Our findings have important policy implications: since only large competitive devaluations can restore TB equilibrium, industrial restructuring would appear to be a more sensible strategy, though this cannot be achieved in the short run and is instead a medium/long-term goal. Terms of use: Documents inJEL-Codes: F100, F400, O100.

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Dynamics of the yen-dollar real exchange rate and the US-Japan real trade balance

Cited by 40 publications

References 10 publications

How sensitive are Malaysia's bilateral trade flows to depreciation?

How sensitive are Malaysia's bilateral trade flows to depreciation?

An Empirical Investigation of Trade Flows Between Australia and its Major Trading Partners

Competitive Devaluations in Commodity-Based Economies: Colombia and the Pacific Alliance Group

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