TITLE

THE J-CURVE DYNAMICS OF U.S. BILATERAL TRADE

AUTHOR(S)
Bahmani-Oskooee, Mohsen; Ratha, Artatrana
PUB. DATE
March 2004
SOURCE
Journal of Economics & Finance;Spring2004, Vol. 28 Issue 1, p32
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Three earlier studies examined the impact of dollar depreciation on bilateral trade between the United States and her six largest trading partners. They used different methodologies that resulted in different outcomes. In this paper we consider 18 major trading partners of the United States and employ a relatively new method to investigate the short-run us well us the long-run response of the bilateral trade balance to currency depreciation. While us with previous research we are unable to discover any J-curve pattern in the short run, in the long run real depreciation of the dollar has favorable effects on the U.S. trade balance in most cases.
ACCESSION #
13586596

 

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