The J- and S-curves: a survey of the recent literature
Mohsen Bahmani-Oskooee () and
Scott Hegerty ()
Journal of Economic Studies, 2010, vol. 37, issue 6, 580-596
Purpose - Since the introduction of the concepts of the J- and S-curves, many researchers have tried to verify their validity empirically. This paper aims to review the related papers and to offer direction for future research. Design/methodology/approach - This is a review paper. As such, no method is employed here. Rather, the methodologies used by others to test the J- and S-curves are explained and reviewed. Findings - No new findings are offered since this is a review paper. Practical implications - The J- and S-curves show whether currency depreciation worsens the trade balance first before improving it. Since the majority of studies are country-specific, policymakers could benefit by learning whether currency depreciation will be effective in improving the trade balance. Originality/value - This is a literature review paper and its originality is in terms of collecting the literature together and presenting it in one single paper.
Keywords: Exchange rates; Economic processes; Foreign exchange; Trade (search for similar items in EconPapers)
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