This paper intends to measure the effects of public infrastructures on firms’ productivity from a sample of 10 subsectors of the Senegalese modern sector. The model used for that purpose is based on the decomposition of the Total Factor Productivity (TFP) growth which includes the contribution...

One of the main stylised facts that has emerged from the recent literature on global value chains is that bilateral trade imbalances in gross terms can differ substantially from those measured in value added terms. However, the factors underlying the extent and sign of the differences between...

Purpose – The purpose of this paper is to study empirically the dynamics of Turkish bilateral trade between Turkey and her nine trading partners, in addition to aggregate trade balance data. Design/methodology/approach – The paper employs cointegration, generalized impulse response analysis,...

This paper investigates the relevance of traditional trade-exchange rate theorems for developing countries facing sunk entry costs in international markets. Firstly, the theorems analysing pricing of tradable goods and the trade balance dynamics following exchange rate shocks are accounted for....

This paper demonstrates that the current economic crisis has its roots in the evolution of the global economy during the 1960s. The gradual increase of US debt from the 1960s accompanied by the deficit in the US trade balance due to international competition from EU, Japan, and later from China...

North American Free Trade Agreement (NAFTA) was created to help to improve the economic well being of the people in the member countries. NAFTA did improve the trade balance and foreign direct investment of Mexico. NAFTA also improved the trade balance and employment rate in Canada. However, the...

Purpose – Impact of currency depreciation or devaluation on the trade balance is not instantaneous. Indeed, because of adjustment lags favorable effects of depreciation is only realized in the future. This short-run dynamics of the trade balance is summarized by the S-Curve phenomenon. The...

This paper examines the J-curve hypothesis for Australia, Canada, New Zealand and the UK. Applying the vector error correction model and the generalised impulse response function, this study finds that the trade balance reacts to real depreciation in several different patterns in the short run....

This paper investigates the sustainability of trade balances in the Sub-Saharan African regions, using both the panel unit root (IPS) test proposed by Im et al. (2003) and the cross-sectionally augmented version of the IPS (CIPS test) suggested by Pesaran (2007), where the former test is based...

Purpose – The Marshall-Lerner (M-L) condition, which stipulates that a devaluation or depreciation of its currency will improve a country's trade balance only if the sum of the absolute values of a country's import and export price elasticities are greater than one, is a fundamental tenet of...