Previous research that investigated the response of Swedish trade balance to currency depreciation either used trade data between Sweden and rest of the world or between Sweden and her major trading partner. They did not find any long-run significant impact of depreciation on Swedish trade...

Early studies on the impact of currency devaluation or depreciation on the trade balance focused on using aggregate trade data between one country and rest of the world and estimated the well-known Marshall-Lerner (ML) condition. Due to aggregation bias, a second set of studies have relied upon...

Over the past half century, Western Europe has been part of varying currency regimes. Yet, whether under Bretton Woods, the European Monetary System, or the Euro, exchange-rate fluctuations have had an influence on these countries’ trade flows with the United States at the national and the...

Due to data availability, most theories in international economics are tested by using data from developed countries. The J-Curve phenomenon, which summarises the short-run response of the trade balance to currency depreciation, is no exception. Egypt has kept close track of its commodity trade...

Backus et al. in (Am Econ Rev 84(1): 84–103, 1994) found that the cross-correlation function between terms of trade and trade balance resembles the letter S and labeled it the S-curve. Support for S-curve is rather weak in some cases, most notably US when aggregate trade data are used....

The 'S-Curve' phenomenon postulates that while cross correlation coefficients between past values of the trade balance and current exchange rate could be negative, the same cross-correlation between future values of the trade balance and current exchange rate could be positive. In this study, we...

Couple previous studies that have investigated the J-curve phenomenon for Indonesia, have employed aggregate trade data and provided mixed results. Given the aggregation bias embodied in using trade data between Indonesia and the rest of the world, we disaggregate Indonesian trade data by...