Purpose – Since the introduction of the concepts of the J- and S-curves, many researchers have tried to verify their validity empirically. This paper aims to review the related papers and to offer direction for future research. Design/methodology/approach – This is a review paper. As such,...

Purpose: The purpose of this paper is to assess asymmetric effects of exchange rate changes on Thailand’s trade balances. Design/methodology/approach: The design methodology is based on the nonlinear ARDL approach of Shin et al. (2014). Findings: The authors find strong support for the...

Purpose: The purpose is to assess the asymmetric effects of exchange rate changes on the trade balance using data from African nations. Design/methodology/approach: The methodology is based on the most recent development in asymmetry cointegration and error-correction modeling. Findings: While...

Productivity bias hypothesis claims that deviation of the PPP based exchange rate from the equilibrium rate is mainly due to productivity differentials among countries. Early studies that employed cross-sectional data in testing the hypothesis provided mixed results. A few time-series studies...

Purpose – To avoid aggregation bias by using trade data at bilateral level so that we can determine how sensitive are Britain's inpayments and outpayments to the value of the British pound. Design/methodology/approach – The method is based on the bounds testing approach to cointegration and...

This paper investigates the long-run relationship between Iranian trade balance and the black market value of Iranian rial by employing cointegration technique. It is shown that in a oil producing country like Iran due to rent-seeking opportunities, depreciation of the rial in the black market...

Attempts to shed new light on the relation between the terms of trade and effective exchange rate using cointegration analysis and data from 25 countries. Findings could be summarized by saying that there is no long-run relation between exchange rate and the terms of trade.

Purpose – Studies that have addressed the stability of the demand for money in African countries are rare. A few papers have addressed the issue in a small number of individual countries. For cross-country comparison, this paper aims to investigate the stability of the M2 demand for money in...

Purpose – Since the last review article by McKenzie, the literature has experienced a surge in the number of empirical articles. These new contributions, coupled with those that were overlooked by McKenzie, set the stage for this review. Many of the recent studies have been empirical in nature...