TITLE

ADDITIONAL EVIDENCE ON THE MARSHALL-LERNER CONDITION: THE CASE OF IRELAND

AUTHOR(S)
ANASTASSIOU, THOMAS A.; VAMVOUKAS, GEORGE A.
PUB. DATE
December 2012
SOURCE
International Journal of Economic Research;Dec2012, Vol. 9 Issue 2, p203
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
This paper attempts to assess the impact of real exchange rate changes on Irish external trade performance. The empirical part of the paper tests the validity of Marshall-Lerner (ML) condition, employing modern time series techniques. It investigates the interrelationship between the real effective exchange rate and trade balance empirically by analyzing the cointegrating coefficients, the impulse response function parameters, and by plotting the impulse responses. The long-run dynamics of the VAR model produce highly significant results which, in the case of Ireland, are consistent with the ML condition.
ACCESSION #
84019508

 

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