TY - JOUR
T1 - Kazakhstan trade with its partners and the role of tenge
T2 - an asymmetric analysis
AU - Bahmani-Oskooee, Mohsen
AU - Harvey, Hanafiah
AU - Hosny, Amr
N1 - Publisher Copyright:
© 2018, Eurasia Business and Economics Society.
PY - 2019/12/1
Y1 - 2019/12/1
N2 - Previous research has shown that lack of any short-run and long-run relationship between the trade balance and the exchange rate could be due to ignoring non-linear adjustment of the exchange rate. In this paper, we introduce non-linearity of the exchange rate adjustment and consider the asymmetric response of Kazakhstan’s trade balance with each of its 13 trading partners. While we find short-run asymmetric response in almost all 13 models, short-run asymmetric effects translate into the long run only in the trade with Austria, China, France, and the U.S. Only in the trade with France a tenge depreciation had favorable long-run effects.
AB - Previous research has shown that lack of any short-run and long-run relationship between the trade balance and the exchange rate could be due to ignoring non-linear adjustment of the exchange rate. In this paper, we introduce non-linearity of the exchange rate adjustment and consider the asymmetric response of Kazakhstan’s trade balance with each of its 13 trading partners. While we find short-run asymmetric response in almost all 13 models, short-run asymmetric effects translate into the long run only in the trade with Austria, China, France, and the U.S. Only in the trade with France a tenge depreciation had favorable long-run effects.
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U2 - 10.1007/s40822-018-0116-2
DO - 10.1007/s40822-018-0116-2
M3 - Article
AN - SCOPUS:85058135986
SN - 1309-422X
VL - 9
SP - 493
EP - 513
JO - Eurasian Economic Review
JF - Eurasian Economic Review
IS - 4
ER -