This study examined the short-run and long-run effects of real exchange rate changes on the Nigeria's trade balance. The paper employed both linear and non-linear ARDL bounds testing approach to cointegration to test for the J-curve phenomenon in Nigeria using quarterly data spanning the period...

African countries have over the years experienced persistent current account deficits. The role of asymmetries in explaining the response of trade balance to exchange rate movement has not received adequate attention as linear models dominate extant empirical literature. In this paper, we...

This study investigates the determinants of the trade balance in West African and Monetary Union (WAEMU) over the period 1975-2017. We employ the Mean Group (MG) estimator along with the grouped mean version of Dynamic OLS (DOLS) and Fully Modified OLS (FMOLS) to deal with both endogeneity and...

The US dollar is the most prevalent currency to settle internationally traded merchandise. A few existing studies demonstrate that the US dollar can significantly impact a country's trade balance with a non-US partner. Nevertheless, the current literature indicates the remarkable deficiency of...

Member countries of the euro area, and the peripheral states in particular, face an especially difficult problem: on the one hand, they urgently need stronger economic growth to reduce high debt and unemployment levels. On the other hand, however, they have no scope to use fiscal policy to...

Die Mitgliedsländer der Eurozone, vor allem die sogenannten Peripheriestaaten, stehen vor einem schwer zu lösenden Problem: Einerseits benötigen sie dringend ein stärkeres Wirtschaftswachstum, um die aufgebauten Schuldenberge abtragen und die Arbeitslosigkeit reduzieren zu können, verfügen...

This paper empirically investigates the impact of change in exchange rate on export and import flows between Slovakia and its major trading partners. Devaluation or depreciation of a currency worsens the trade balance before improving it, resulting in a J-curve pattern. For the purpose of this...

Fluctuations in exchange rate have threatened the stability of global financial system and have invited unwarranted currency war. South Asia has been experiencing a whopping trade deficit from the last many years. This study is an attempt to analyze the impact of exchange rate depreciation on...

Using a dataset of 101 countries over the 1960-2011 period, we examine the relationship between the real effective exchange rate (REER), on the one hand, and trade openness, trade balance, the terms of trade, factor productivity, and exchange rate regime, on the other one. We use new econometric...

A growing number of recent works support the idea of debt threshold level (turning point), above which debt starts reducing economic growth. However, estimated threshold varies sharply across studies and gives a little insight into what the optimal level of debt is. The point is that there is no...