The literature on income inequality includes many studies that have tried to identify factors such as level of economic development, rate of economic growth, population growth, resource endowment, price instability, and openness as main determinant of income inequality. In this paper, we show...

This study applies the threshold autoregressive (TAR) method proposed by Caner and Hansen (2001) to test the validity of long-run purchasing power parity (PPP) in 14 transition countries, using monthly real effective exchange rates over the period January 1994- June 2012. The empirical results...

The impact of exchange rate volatility on trade flows still continues to be of great interest. More recent studies have looked that the issue at commodity level. In this paper, we consider the trade between Singapore and her major trading partner, the U.S. and investigate the effects of exchange...

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,...

Previous studies that investigated the short-run (J-curve) and the long-run effects of currency depreciation on the trade balance of Pakistan used aggregate trade data between Pakistan and the rest of the world and provided no evidence of any significant impact. We wonder whether lack of the...

In theoretical literature, smuggling is considered as a factor contributing to the deviation of the PPP-based exchange rates from the equilibrium exchange rates with little empirical support. In this paper, we used panel data for 33 developing countries over the period 1982-1995 and used panel...

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 balance and the current exchange rate. It is postulated...

In a 1952 article Alexander argued that currency devaluation could lead to a decline in domestic consumption by redistributing income from workers with high MPC to producers with low MPC. In this paper we include the exchange rate as another determinant of domestic consumption in addition to...

In recent years, research on the effects of currency movements on trade has used disaggregated data and error-correction and cointegration models. The resulting short-run and long-run estimates can be used to isolate not only specific industry responses, but also dynamic effects such as the “J...