Economics at your fingertips  

The S-curve dynamics of trade between the US and Korea: Evidence from commodity trade

Mohsen Bahmani-Oskooee () and Jia Xu

New Zealand Economic Papers, 2014, vol. 48, issue 1, 40-52

Abstract: The S-curve hypothesis in international economics postulates that while cross-correlation coefficients between past values of a country's trade balance and its current exchange rate may be negative, the same coefficients between future values of the trade balance and the current exchange rate may be positive. Previous research has tested and ultimately supported this hypothesis for Korea by using aggregate trade flows. In this paper we consider the trade between Korea and the US and disaggregate their trade flows by industry. We then test the S-curve at the commodity level to identify industries that will benefit from currency depreciation. Out of 74 industries examined, 39 enjoyed the S-curve pattern, including the three largest industries that account for more than 30% of the trade between the two countries.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (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:

Ordering information: This journal article can be ordered from

Access Statistics for this article

New Zealand Economic Papers is currently edited by Gail Pacheco

More articles in New Zealand Economic Papers from Taylor & Francis Journals
Bibliographic data for series maintained by ().

Page updated 2019-10-08
Handle: RePEc:taf:nzecpp:v:48:y:2014:i:1:p:40-52