TY - JOUR
T1 - The U.S. Trade balance with partners from developing world
T2 - An asymmetry analysis of the J-curve effect
AU - Bahmani-Oskooee, Mohsen
AU - Harvey, Hanafiah
N1 - Publisher Copyright:
© 2018 Economic Research Institute of Chung-Ang University.
PY - 2018/6/1
Y1 - 2018/6/1
N2 - We consider the bilateral trade balance of the U.S. with each of her 13 trading partners from the developing world. When we apply the linear ARDL approach of Pesaran et al. (2001), we find support for the J-curve effect with six partners. However, when we apply Shin et al.'s (2014) nonlinear ARDL approach to asymmetry analysis, we find support for the J-curve in the U.S. trade with 10 partners. Additionally, while we find support for the short-run asymmetric effects of exchange rate changes in almost all cases, the short-run effects translate into the long-run significant asymmetric effects in half of the cases.
AB - We consider the bilateral trade balance of the U.S. with each of her 13 trading partners from the developing world. When we apply the linear ARDL approach of Pesaran et al. (2001), we find support for the J-curve effect with six partners. However, when we apply Shin et al.'s (2014) nonlinear ARDL approach to asymmetry analysis, we find support for the J-curve in the U.S. trade with 10 partners. Additionally, while we find support for the short-run asymmetric effects of exchange rate changes in almost all cases, the short-run effects translate into the long-run significant asymmetric effects in half of the cases.
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U2 - 10.35866/caujed.2018.43.2.002
DO - 10.35866/caujed.2018.43.2.002
M3 - Article
AN - SCOPUS:85049788889
SN - 0254-8372
VL - 43
SP - 29
EP - 43
JO - Journal of Economic Development
JF - Journal of Economic Development
IS - 2
ER -