The J-Curve: Evidence from East Asia
Anil K. Lal () and
Thomas C. Lowinger
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Anil K. Lal: Pittsburg State University Pittsburg, Postal: Department of Economics, Finance, & Banking Pittsburg State University Pittsburg, KS 66762 USA
Thomas C. Lowinger: Washington State University Pullman, Postal: Department of Economics Washington State University Pullman, WA 99164-4860 USA
Journal of Economic Integration, 2002, vol. 17, 397-415
Abstract:
This paper examines the determinants of trade balances of seven East Asian countries, using cointegration technique, error correction model, and impulse response function. Among other things, our investigation confirms the existence of J-curve effect and the results show that there are significant differences in the duration and the extent of the J-curve effect across countries. Several explanations consistent with those findings are advanced in the paper, including differences in exchange rate and trade regimes across sample countries. It is likely that liberalization of an exchange rate regime coupled with liberalization of trade may act to dampen the J-curve effect.
Keywords: trade; economic development (search for similar items in EconPapers)
JEL-codes: F10 O10 (search for similar items in EconPapers)
Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0201
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