Test of the bilateral trade J-curve between the USA and Australia, Canada, New Zealand and the UK

Yu Hsing and Bruno S. Sergi

International Journal of Trade and Global Markets, 2010, vol. 3, issue 2, 189-198

Abstract: This paper examines the J-curve hypothesis for Australia, Canada, New Zealand and the UK. Applying the vector error correction model and the generalised impulse response function, this study finds that the trade balance reacts to real depreciation in several different patterns in the short run. There is lack of support for a J-curve for Australia, Canada, and the UK. In the long run, real depreciation improves the trade balance for Australia, Canada, and New Zealand and does not influence the trade balance for the UK.

Keywords: J-curve; trade balances; real depreciation; cointegrating equations; USA; United States; Australia; Canada; New Zealand; United Kingdom; UK; bilateral trade; vector error correction; generalised impulse response function; global markets. (search for similar items in EconPapers)
Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.inderscience.com/link.php?id=31254 (text/html)
Access to full text is restricted to subscribers.

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:ids:ijtrgm:v:3:y:2010:i:2:p:189-198

Access Statistics for this article

More articles in International Journal of Trade and Global Markets from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().