Does a J-curve exist for Korea and Taiwan?

Han-Min Hsing and Andreas Savvides ()

Open Economies Review, 1996, vol. 7, issue 2, 127-145

Abstract: This article examines whether the trade balance of two dynamic export-oriented economies, Korea and Taiwan, exhibits a J-curve effect. The article studies both their bilateral and aggregate trade balance during the flexible exchange-rate era. When the exchange-rate coefficients are unconstrained, we demonstrate that no J-curve effect exists either for bilateral or aggregate trade balances. Several robustness checks confirm the validity of our findings. When a polynomial-distribute lag structure is imposed on exchange-rate coefficients, a J-curve is evident in some cases. The article discusses possible explanations for the general lack of evidence in favor of a J-curve, including the response of a small country's trade balance to exchange-rate changes. Copyright Kluwer Academic Publishers 1996

Keywords: trade balance; Korea; Taiwan; J-curve (search for similar items in EconPapers)
Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

Downloads: (external link)
http://hdl.handle.net/10.1007/BF01891900 (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:kap:openec:v:7:y:1996:i:2:p:127-145

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/11079/PS2

DOI: 10.1007/BF01891900

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 () and Springer Nature Abstracting and Indexing ().