Short-Run versus Long-Run Effects of Devaluation: Error-Correction Modeling and Cointegration

Mohsen Bahmani-Oskooee and Janardhanan Alse
Additional contact information
Janardhanan Alse: Indiana University, Southeast

Eastern Economic Journal, 1994, vol. 20, issue 4, 453-464

Abstract: After identifying shortcomings associated with most previous studies on the relation between the trade balance and the exchange rate, we reexamine the statistical relation between these two variables by employing the cointegration and error-correction modeling techniques. For most countries considered, we do not find evidence of a long-run relation between the trade balance and the exchange rate. Results from error-correction modeling provide some support for the short-run relation and the J-Curve phenomenon.

Keywords: Devaluation; Exchange Rates (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (75)

Downloads: (external link)
http://web.holycross.edu/RePEc/eej/Archive/Volume20/V20N4P453_464.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:20:y:1994:i:4:p:453-464

Access Statistics for this article

Eastern Economic Journal is currently edited by Cynthia A. Bansak, St. Lawrence University and Allan A. Zebedee, Clarkson University

More articles in Eastern Economic Journal from Eastern Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Victor Matheson, College of the Holy Cross ().