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...

Earlier studies that investigated the J-Curve phenomenon for Pakistan employed aggregate trade data. These studies suffered from the aggregation bias problem. In order to overcome this constraint, this paper tests the effects of real exchange rate depreciation in the Pakistani Rupee on the...

The S-curve sums up the dynamic relationship between terms of trade and trade balance. This pattern has received weak support in some developed and less developed countries when aggregate trade data are used. Empirical regularities based on aggregate trade data can be biased since aggregation...

This paper studies the exchange rate effect on the trade balance for the major oil exporters Kazakhstan and Russia. Results from baseline tests of the Marshall Lerner condition indicate that an exchange rate depreciation actually decreases exports and deteriorates the trade balance, the opposite...

Autoregressive Distributed Lag Model (ARDL) even though distinguishes between the short run and the long run effect allows both the intercepts and slopes to vary across countries. On the other hand, the static panel estimation such as fixed-effects estimation (FE) cannot distinguish between the...

Under the world dollar standard, a discrete appreciation by a dollar creditor country of the United States, such as China or Japan, has no predictable effect on its trade surplus. Currency appreciation by the creditor country will slow its economic growth and eventually cause deflation but...

There is substantial research supporting the "J-Curve" effect and contractionary effects on economies due to devaluation, especially for less developed countries (LDCs). The World Bank and the International Monetary Fund (IMF), however, have been promoting devaluation as a policy tool for...

Earlier studies that investigated the J-Curve phenomenon for Pakistan employed aggregate trade data. These studies suffered from the “aggregation bias” problem. In order to overcome this constraint, this paper tests the effects of real exchange rate depreciation in the Pakistani Rupee on the...

This paper investigates the determinants of the trade balance using panel data for 32 industrialized and emerging economies for the period 1990?2007. The results based on fixed effects models and linear mixed models allowing for random slope coefficients, show that the trade balance as a...

Under the world dollar standard, a discrete appreciation by a dollar creditor country of the United States, such as China or Japan, has no predictable effect on its trade surplus. Currency appreciation by the creditor country will slow its economic growth and eventually cause deflation but...