EconPapers    
Economics at your fingertips  
 

Commodity trade between the US and Korea and the J-curve effect

Mohsen Bahmani-Oskooee (), Jia Xu and Sujata Saha

New Zealand Economic Papers, 2017, vol. 51, issue 1, 1-14

Abstract: Several studies have investigated the impact of currency depreciation on Korean trade balance with the rest of the world and have found no significant effects. Suspecting that these studies could suffer from aggregation bias, another group has disaggregated the Korean trade flows by its trading partners and has investigated the response of the Korean trade balance to depreciation using bilateral trade data between Korea and each of its trading partners. Again, in most instances, they have found no significant effect. In this paper, we concentrate on the bilateral trade between Korea and the US and disaggregate their trade flows further by industry. We investigate the response of the trade balance of 69 industries to currency depreciation and find that the trade balance of 48 industries are affected significantly by changes in the real exchange rate in the short run. However, short-run effects translate to long-run favorable effects only in 24 industries.

Date: 2017
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/00779954.2015.1095786 (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:taf:nzecpp:v:51:y:2017:i:1:p:1-14

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RNZP20

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 2019-06-05
Handle: RePEc:taf:nzecpp:v:51:y:2017:i:1:p:1-14