A disaggregated approach to test the J-Curve phenomenon: Japan versus her major trading partners |
| |
Authors: | M Mohsen Bahmani-Oskooee Gour G Goswami |
| |
Institution: | (1) Center for Research on International Economics, University of Wisconsin-Milwaukee, 53201 Milwaukee, WI;(2) Department of Economics, University of Wisconsin-Milwaukee, 53201 Milwaukee, WI |
| |
Abstract: | A limited number of studies have tested the J-Curve phenomenon using bilateral trade data between the United States and its
major trading partners. In this paper, we test the J-Curve hypothesis by using quarterly bilateral data over the 1973–98 period
between Japan and its nine major trading partners. We demonstrate that when aggregate data are used, there is no evidence
of the J-Curve in the short run or any significant relation between trade balance and effective exchange rate in the long
run. However, when bilateral data are employed, we find evidence of the J-Curve between Japan and Germany as well as between
Japan and Italy. We also find that real depreciation of the yen has favorable long-run effects in the cases of Canada, the
United Kingdom, and the United States. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|