The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the elasticity of trade volume to relative prices. To this end, most previous studies used aggregate trade data. To shy away from problems associated with using aggregate data, recent...

Numerous studies in the literature have tried to test whether export causes economic growth or economic growth causes export growth. The statistical approach has been one of applying Granger or Sims causality test to data drawn from individual country. In order to increase the power of existing...

There is a common belief that currency depreciation worsens the trade balance in the short run and improves it in the long run resulting in the so called J-curve phenomenon. Early studies employed aggregate data and provided mixed results. Recent studies, however, have employed disaggregated...

Previous research that investigated the relationship between the black market and the official exchange rate employed cointegration analysis to establish the long-run relationship and Granger causality to detect the short-run causality between the two rates (for a small number of countries). In...