– The J- and S-curves show whether currency depreciation worsens the trade balance first before improving it. Since the … effective in improving the trade balance. Originality/value – This is a literature review paper and its originality is in terms …

Exchange rate volatility is argued to affect the trade flows negatively and positively. Indeed, empirical studies that … have addressed the issue have supported both effects. These studies have used aggregate trade flows data either between one … country and the rest of the world or between two countries at the bilateral level. Studies that have disaggregated trade data …

Previous research that investigated the response of Swedish trade balance to currency depreciation either used trade …-run significant impact of depreciation on Swedish trade balance, especially with the USA. We wonder whether lack of any significant … relation between bilateral trade balance between the two countries and the real kronor-dollar rate is due to aggregation bias …

, the European Monetary System, or the Euro, exchange-rate fluctuations have had an influence on these countries’ trade … role of real exchange-rate fluctuations on trade with the United States for 74 industries. We find that the trade balances … likely to do this, we find that a relatively large share of industries in the Machinery sector see their trade balances …

In testing the short-run effects of currency depreciation on the trade balance, rather than engaging in regression … analysis, part of the literature basically looks at the correlation coefficients between past and future values of the trade … trade balance and current exchange rate, but negative between past values of the trade balance and the current exchange rate …