Nonlinear ARDL Approach and the J-Curve Phenomenon
Mohsen Bahmani-Oskooee () and
Additional contact information
Hadise Fariditavana: The University of Wisconsin-Milwaukee
Open Economies Review, 2016, vol. 27, issue 1, 51-70
Abstract Since introduction of cointegration and error-correction modeling, the definition of the J-curve has changed to reflect short-run deterioration combined with long-run improvement of the trade balance due to currency depreciation. Standard methods such as ARDL approach of Pesaran et al. (2001) assume that adjustment of variables follow a linear path. It is now recognized that the adjustment process could be nonlinear. Application of Non-linear ARDL approach of Shin et al. (2013) provides more evidence of the J-curve supporting non-linear adjustment of variables as well as asymmetric effects of exchange rate changes on the trade balance, using bilateral trade balance models of the U.S. with each of her six largest trading partners.
Keywords: J-Curve; Non-linear ARDL approach; Asymmetry effects; Bilateral trade balance (search for similar items in EconPapers)
JEL-codes: F31 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (32) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s11079-015-9369-5 Abstract (text/html)
Access to full text is restricted to subscribers.
Journal Article: Nonlinear ARDL Approach and the J-Curve Phenomenon (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kap:openec:v:27:y:2016:i:1:d:10.1007_s11079-015-9369-5
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2
Access Statistics for this article
Open Economies Review is currently edited by G.S. Tavlas
More articles in Open Economies Review from Springer
Bibliographic data for series maintained by Sonal Shukla ().