U.S.-Africa trade balance and the J-curve: An asymmetry analysis |
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| Authors: | Mohsen Bahmani-Oskooee Augustine C. Arize |
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| Affiliation: | 1. The Center for Research on International Economics and Department of Economics, The University of Wisconsin-Milwaukee, Milwaukee, Wisconsin, USAbahmani@uwm.edu;3. College of Business, Department of Economics &4. Finance, Texas A&5. M University-Commerce, Commerce, Texas, USA |
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| Abstract: | ABSTRACTFor the first time in the body of literature, we consider bilateral trade balance models of the US with each of her 20 trading partners from Africa and try to assess the J-curve phenomenon. After applying the linear and nonlinear ARDL approaches, we find support for the J-curve effect in three partners from the linear models. However, support rises to eight partners when we shift to nonlinear models. Furthermore, we find short-run asymmetric effects of exchange rate changes in almost all models and significant long-run asymmetric effects in half of the partners. |
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| Keywords: | Africa asymmetry cointegration bilateral J-curve US |
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