Dynamics of the Trade Balance: The Turkish J-Curve
By Elif Akbostancı. 2004
126 citations recorded by the source corpus.
The J-curve hypothesis suggests a specific pattern for the response of the trade balance to real exchange rate changes; a real depreciation initially worsens the trade balance, but through time the trade balance improves, and thus the response of the trade balance over time generates a tilted J-shape. This study investigates the existence of a J-curve in the Turkish data in the 1987-2000 period by using quarterly data. First, an error correction model is estimated to differentiate between the long-run equilibrium and short-run dynamics. Then the response of trade balance to real exchange rate shocks is investigated by using the generalized impulse response methodology. Even though the suggested long-run pattern, which is the improvement of the trade balance in response to a real depreciation emerges, our results do not exactly support the J-curve hypothesis in the short run.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/9ec97f2d3bac3c1bd6d9a5c5343cdec62ef73c11
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In Economics and Econometrics
- S. Hegerty
- Hanafiah Harvey
- Mohsen Noghani Dokht Bahmani
- Mohsen Bahmani-Oskooee *
- Olugbenga A. Onafowora
- Salah A. Nusair
- Ferda Halicioglu
- Dr. Gour Gobinda Goswami
Citations in the corpus
- The J‐ and S‐curves: a survey of the recent literature (2010, background): “Other studies that focus on Asian countries' aggregate trade include Akbostanci (2004)”
- Empirical tests of the Marshall‐Lerner condition: a literature review (2013, methodology): “Country-specific studies using this method include: Marwah and Klein (1996) for Canada; Tang (2004) for the ASEAN-5; Gomes and Paz (2005) for Brazil; Akbostanci (2004) and Halicioglu (2008) for Turkey; Duasa (2007) and Yusoff (2009) for Malaysia; Matesanz and Fugarolas (2009) for Argentina; Kim (200”
- Exchange rate and trade balance in east asia: is there a J-curve? (2003, background): “1 See for example, Wilson, 2001, on Malaysia, Korea and Singapore; Akbostanci, 2002, for Turkey; Hsing and Savvides, 1996, on Korea and Taiwan; Bahmani-Oskooee, 1996, for Korea, Pakistan, Philippines, Singapore, Greece and S. Africa; Bahmani-Oskooee, 1985, for India, Korea, Thailand and Greece; Hima”