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U.S. bilateral trade balances and the dollar
Institution:1. Department of Business and Technology Management, KAIST, Daejeon, Republic of Korea;2. Department of Economics, College of Business, Lehigh University, 621 Taylor St., Bethlehem, PA 18015, USA;1. HySA Systems Competence Centre, South African Institute for Advanced Materials Chemistry (SAIAMC), University of the Western Cape, Bellville, South Africa;2. University of Split, Faculty of Electrical Engineering, Mechanical Engineering and Naval Architecture, Department of Thermodynamics and Heat Engines, Split, Croatia;3. Institute for Energy Technology, Kjeller, Norway;1. South African Institute for Advanced Materials Chemistry (SAIAMC), University of the Western Cape, Bellville 7535, South Africa;2. TF DESIGN (Pty) Ltd., Stellenbosch 7602, South Africa;1. HySA Systems Competence Centre, South African Institute for Advanced Materials Chemistry (SAIAMC), University of the Western Cape, Bellville, South Africa;2. University of Split, Faculty of Mechanical Engineering and Naval Architecture, Department of Thermodynamics and Heat Engines, Split, Croatia;3. TF DESIGN (Pty) Ltd., Stellenbosch, South Africa;4. Impala Platinum Ltd, Springs, South Africa
Abstract:U.S. bilateral export and import values with seven large trading partners are tested for real exchange rate effects over 1975–1985. The results suggest that dollar devaluation would have the most favorable impact on the U.S. trade balance in the case of Japan and the least favorable in the case of Canada.
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