A limited number of studies have tested the J-Curve phenomenon using bilateral trade data between the United States and its major trading partners. In this paper, we test the J-Curve hypothesis by using quarterly bilateral data over the 1973-98 period between Japan and its nine major trading...

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...

Empirical studies pertaining to the impact of smuggling on the black mar-ket premium (BMP) are very rare in the literature. This paper adds to the literature on the relation between smuggling and the black market premium in the foreign exchange market by pooling data from 70 countries over the...

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...

The traditional way of assessing the impact of currency depreciation on the trade balance has been to estimate the import and export demand elasticities using aggregate trade data and check the Marshall–Lerner condition. To reduce the aggregation bias, the trend now is to estimate these...

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...

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...

Researchers who have been concerned with the economic implications of military spending have mostly concentrated on its impact on economic growth, corruption, real exchange rate and inflation. In this paper we investigate the impact of military spending on black market premium, an area that has...

Investigating the impact of institutional factors on macroeconomic variables has gained momentum in recent years. In this paper we investigate the impact of political rights and civil liberties on the black market premium on foreign exchange. After taking account of other important determinants...